Business Income
Revenue: Gross receipts from business activities.
Expenses: Deductible business expenses, including operating costs and asset depreciation.
Non-Commercial Losses: Comply with non-commercial loss rules; defer losses if necessary.
Income Type | Reporting Details |
|---|---|
Revenue | Gross receipts from business. |
Expenses | Deductible business expenses. |
Non-Commercial Losses | Defer losses if necessary. |
Example: Business Income
Scenario: Sarah runs a small online business and reported the following figures in 2024.
Revenue: $120,000
Expenses: $70,000 (operating costs, asset depreciation)
Income Type | Amount |
|---|---|
Revenue | $120,000 |
Expenses | $70,000 |
Net Business Income | $50,000 |