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Business income Nonemployee compensation  | Business Income |
Introduction | |
| This chapter primarily explains business income and how to account for it on your tax return. It also explains what items are not considered 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 C–EZ. But you report the income from the sale of business assets, such as land and office buildings, on other forms instead of Schedule C or C–EZ. For information on selling business assets, see chapter 3. | |
| Taxtip: | |
| Nonemployee compensation. Business income includes amounts you received in your business that were properly shown on Forms 1099–MISC. This includes amounts reported as nonemployee compensation in box 7 of the form. You can find more information in the instructions on the back of the Form 1099–MISC you received. | |
Previous Page: 334-How To Claim the Credit Next Page: 334-Kinds of Income Use to find additional instances of index items. |
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