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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    Income received that is taxed at the highest rates, or ordinary ...
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RELATED FAQS
  1. 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 >>
  2. 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 >>
  3. What is the difference between gross income and taxable income?

    Understanding common tax terms including gross income and taxable income can help individuals navigate tax accounting in ... Read Answer >>
  4. What is the difference in tax liability between gross income and other kinds of income?

    Find out how the U.S. government taxes worker's earnings, whether it is gross income or income exempted or excluded from ... Read Answer >>
  5. What is the Difference Between Operating Income and Net Income?

    Understand the difference between operating income and net income, including the calculations and interpretations of each ... Read Answer >>
  6. What are the differences between gross profit and net income?

    Find out how companies determine gross profits and net income, and how these figures provide quick snapshots of their financial ... Read Answer >>
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