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Debt to income ratio |
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Debt to income ratioA ratio used by lending institutions to determine whether a person is qualified for a mortgage. Debt-to-income is the total amount of debt, including credit cards and other loans, divided by total gross monthly income.Debt to income ratio Similar MatchesIncome propertyIncome propertyReal estate purchased for the reasons of income generation. Taxable incomeTaxable incomeThe amount of an individual's annual income on which tax is payable defined as:Taxable income = Income - Reliefs - AllowancesThe main reliefs are pension contributions and donations to charity. The main allowances are the 'personal allowance' which every individual has (£4,615 for people under 65 in 2003-2004) and the Married Couples Allowance for couples where one spouse is 65 or over.So someone with Income of £20,000 who has made pension contributions in the year of £1,000 will have total income of £19,000, and his taxable income will be £19,000 less a personal allowance of £4,615 = £14,385.The amount of tax he has to pay will be determined by the tax bands in operation in the year in question. For 2003-2004, the bands are:£1-£1,960: tax rate is 10% (starting rate) - tax on band is £196£1,961-£30,500: tax rate is 22% (basic rate) - tax on band is £6,278.58Over £30,500: tax rate is 40% (higher rate) Disposable incomeDisposable incomeThe amount of money which an individual has available to spend on inessential items after essential bills have been met. Income basketsIncome basketsCategory to which certain income is allocated. Losses in one basket may not be used to offset gains in another basket. Specified in U.S. tax code. Active incomeActive incomeIncome from an active business as opposed to passive investment income according to the U.S. tax code. Further SuggestionsIncome effectincome shares Passive Income Generator (PIG) income tax Section 352 of the Income and Corporation Taxes Act 1988 Corporate income fund (CIF) Disposable income Adjusted gross income (AGI) Social Security Disability Income Insurance adjusted gross income Supplemental Security Income income fund Income fund Tax deferred income Underwriting income Economic income Discretionary income Taxable income Foreign source income net income High current income mutual fund Functional distribution of income Negative income tax income drawdown Tax exempt income fund |
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