Rental income of persons with capital consumption adjustment
Rental income is the net income of persons from the rental of real property except for the income of persons primarily engaged in the real estate business; the imputed net rental income of the owner-occupants of nonfarm dwellings; and the royalties received from patents, copyrights, and rights to natural resources.The Capital Consumption Adjustment is the difference between private consumption of fixed capital (CFC) and private capital consumption allowances. Private CFC is a charge for the using up of private fixed capital. It is based on studies of prices of used equipment and structures in resale markets. Private capital consumption allowances consist of tax-return-based depreciation charges for corporations and nonfarm proprietorships and of historical-cost depreciation, calculated by BEA, for farm proprietorships, rental income of persons, and nonprofit institutions.