economy

definition of capital income

The rent is that utility or profit that comes from a good, or failing that, that which produces something .

It should be noted that recurrently it is a word that is usually used as synonym of the term income. The apartment that belonged to my parents leaves me an income of two thousand pesos a month.

On the other hand, it is also called with the term of income to value or amount that someone pays for the rental or lease of a property. The rent of the apartment we live in has risen 20% so far this year.

Meanwhile, in the field of Economics, which is where the concept at hand is located, capital is understood to be one of the existing productive factors together with land and labor. Generally, the word capital is used to account for an amount of money that is available and that can be invested or, on the contrary, loaned to someone. When I started my business, I only had two thousand pesos of initial capital. Thanks to the excellent sales we made last month, our capital increased to ten thousand pesos.

So, the Capital Income are those dividends obtained by placing a capital in a productive type processPut in simpler words, capital income will be that profit or gain that comes from the assets that a person has. For example, the person who owns an apartment and rents it, the amount that the tenant pays for the rental of the property will be a capital income.

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