Publication 334 |
2001 Tax Year |
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.
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.
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