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R
Ross-graham
March 27, 2025
Question

Is Ordinary Business Income the total income on the year (Gross Sales) or Income After Expenses (Net Profit)?

  • March 27, 2025
  • 1 reply
  • 0 views
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    1 reply

    K
    KeshaH
    March 27, 2025

    If your business is an S corporation or Partnership, ordinary business income is your net profits from the ordinary course of business. This income is treated the same by all shareholders or partners.

     

    Ordinary business income doesn't include items that are treated differently among shareholders and partners (called separately stated items) such as investment income, rental income, and charitable contributions.

     

    Ordinary business income can be found on Schedule K-1 in box 1. 

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