Define: Net Ordinary Income

How is Net Ordinary Income defined in a legal contract?

• Net Ordinary Income means the surplus of all taxable income or gain, except capital gain and any dividend income that is handled as net capital gain for tax purposes, over all items of taxable deduction or loss, excluding capital loss, which are allocated to members during a tax year. Seen in 3 SEC filings
• Net Ordinary Income means the ordinary income of a fund, deducted by the expenses of operating that fund. Seen in 2 SEC filings

Note: The Genie AI Legal Assistant pulled this data out of the SEC EDGAR Database of 500,000 records from the past 22 years of filings. We regularly update this page as new filings and definitions come in.

Search EDGAR for 'Definitions of net ordinary income' yourself to verify these results. We are always keen to point people to source documents.

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Which definition should you use?

🤔 Our AI Legal Assistant has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.

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Genie Definition 1

• Net Ordinary Income means the surplus of all taxable gains over losses, not including capital-related transactions, during [tax year].

Relevant Contract Types

• Partnership Agreement
• Business Sale Agreement
• Joint Venture Agreement
• Investment Agreement

Relevant Circumstances

• Income Tax Calculation
• Profit sharing strategies
• Investment returns measurement

Relevant Sectors

• Finance
• Accounting
• Investment & Wealth Management
• Real Estate

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Genie Definition 2

• Net Ordinary Income means the ordinary income of a [fund], reduced by the fund's operational expenses.

Relevant Contract Types

• Mutual Fund Agreement
• Investment Management Agreement
• Hedge Fund Agreement

Relevant Circumstances

• Annual Fund performance analysis

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