Economic Interest Law & Legal Definition


Economic interest refers to a substantial financial interest in investments, employment, awarding of contracts, purchases, leases, sales, or similar matters.

An economic interest is possessed in every case in which the taxpayer has acquired by investment any interest in mineral in place or standing timber and secures, by any form of legal relationship, income derived from the extraction of the mineral or severance of the timber, to which he must look for a return of his capital. [Treasury Regulations § 1.611-(b)].