Ordinary Income

“Ordinary” is tax law's default setting for income: if the tax code doesn't specify that a particular type of income qualifies for preferential capital gains rates, it is ordinary income and therefore subject to tax at your highest marginal income tax rate.

Just to make sure there's no room for argument, the tax code specifically states that ordinary income includes gain from property that is neither a Capital Asset nor business property eligible for preferential treatment under IRC Section 1231(b).1

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Ordinary Income