Intangible income refers to earnings derived from intangible assets or properties. These can include a variety of financial instruments and intellectual properties, such as patents, copyrights, trademarks, and trade names. Essentially, it encompasses income generated through the ownership, sale, exchange, or other forms of disposition of these intangible assets.
This term is commonly used in tax law and financial regulations. Intangible income is relevant in areas such as corporate finance, intellectual property law, and taxation. Understanding how intangible income is defined and treated can help individuals and businesses manage their finances more effectively, especially when it comes to reporting income and complying with tax obligations. Users can utilize legal templates from US Legal Forms to assist in documenting and reporting intangible income appropriately.
Here are a couple of examples of abatement:
Example 1: A company sells a patent it owns for a technology product. The income generated from this sale is considered intangible income.
Example 2: An individual receives dividends from stocks they own in a corporation. These dividends are classified as intangible income.
In Ohio, the definition of intangible income is outlined in the Ohio Revised Code (ORC Ann. 718.01). This statute specifies the types of income considered intangible and provides clarity on what is excluded from this category.
| State | Definition/Notes |
|---|---|
| Ohio | Defines intangible income broadly, including various forms of financial returns. |
| California | Similar definitions but may have different tax implications for intangible income. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Difference |
|---|---|---|
| Passive Income | Income earned without active involvement, such as rental income. | Intangible income specifically relates to intangible assets, while passive income can include tangible assets. |
| Capital Gains | Profit from the sale of an asset. | Capital gains can be a component of intangible income but are not the only type. |
If you believe you have intangible income, start by documenting all sources of this income. Consider using templates from US Legal Forms to help you with the necessary paperwork. If your situation is complex, it may be wise to consult a legal professional for tailored advice.
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Intangible income includes earnings from assets like patents, copyrights, and dividends from stocks.