By the capital income one understands the sum of all payment stream of a national economy, which are paid because of the grant of a right to use, but no wages represent.

In addition belong

• Interest (right to use of liquidity)
• Rents (right to use of soil)

Profits are a combination of a capital income and wages. In the case of a finance company profits are always interest (the profits flow to the shareholders, because they inserted liquidity when establishment into the society). In the case of an unincorporated firm all incomes of the partners are ranked among the profits, although a portion is there to be added to the wages (the partner also as an employee in the height of this portion for the same work payments was received) and the remainder to the interest belongs.

The condition "“no wages represent"” is to be described as follows: A Wohnungsbaugesellschaft buys a property for 200.000 "€ lets a house for 300.000 "€ from its workers on it build. From now on customers draw in and pay each year 20,000 "€. From this payment stream 300,000 "€ wages (because for it one worked) and the remainder are a capital income from economical view (because for it one did not work). Although the payments of the customers rents are called, they are in the process economical only partial rents.

Deviating from this definition the term is used colloquially also for the designation of an income from capital abilities.

Articles in category "A capital income"

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