Starting Your Business/Keeping Tax Records
What is Business Income
If there is a connection between any
income you receive and your business, the income is business
income. A connection exists if it is clear that the payment
of income would not have been made if you did not have the
business.
You can have business income even if you are not involved in
the activity on a regular, full-time basis. Income from work you
do on the side in addition to your regular job can be business
income.
You report most business income, such
as income from the sale of your products or services, on
Schedule
C or Schedule
C-EZ.
Kinds
of Income
Items
That are Not Income
Important References
Publication
334 Tax Guide for Small Business