Business Income

AAA

DEFINITION of 'Business Income'

Any income that is realized as a result of business activity. Business income is a type of earned income, and is classified as ordinary income for tax purposes.

INVESTOPEDIA EXPLAINS 'Business Income'

Business income can be offset with business expenses and business losses. It can be either positive or negative in a given year.

RELATED TERMS
  1. Earned Income

    Income derived from active participation in a trade or business, ...
  2. Ordinary Income

    Income received that is taxed at the highest rates, or ordinary ...
  3. Passive Income

    Earnings an individual derives from a rental property, limited ...
  4. Book Value Reduction

    Reducing the value at which an asset is carried on the books ...
  5. Inherent Risk

    The risk posed by an error or omission in a financial statement ...
  6. Deferred Tax Asset

    A deferred tax asset is an asset on a company's balance sheet ...
Related Articles
  1. 12 Things You Need To Know About Financial ...
    Investing Basics

    12 Things You Need To Know About Financial ...

  2. Tips For The Prospective Landlord
    Home & Auto

    Tips For The Prospective Landlord

  3. In Small Business, Success Is Spelled ...
    Entrepreneurship

    In Small Business, Success Is Spelled ...

  4. Operating Cash Flow: Better Than Net ...
    Markets

    Operating Cash Flow: Better Than Net ...

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center