Business Income

What is 'Business Income'

Business income is 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.

BREAKING DOWN '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
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RELATED FAQS
  1. For tax return purposes, is a savings account considered income?

  2. What is the difference between gross income and earned income?

    Being able to distinguish between earned income and gross income is an important tool in preparing for and filing your individual ... Read Answer >>
  3. Can additional income from a LLC affect Social Security income as taxable?

    If I receive social security income and am over 66 years old and work, will the additional income from a LLC affect the total ... Read Answer >>
  4. What effect does the income effect have on my business?

    Learn if you should open or modify your existing small business based on the income effect. Learn if it would positively ... Read Answer >>
  5. What is the difference between taxable income and gross income?

    Understand the basic differences between the terms gross income and taxable income, and what is included in the total of ... Read Answer >>
  6. What is the difference between earnings and income?

    See how earnings and income are different and when they are used in relation to personal finance versus a business' financial ... Read Answer >>
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