Chapter 5 Business Income This chapter primarily explains what income is business income andhow to account for it on your tax return. It also explains what itemsare not considered income. If there is a connection between any income you receive and yourbusiness, the income is business income. A connection exists if it isclear that the payment of income would not have been made if you didnot have the business. You can have business income even if you are not involved in theactivity on a regular full-time basis. Income from work you do on theside in addition to your regular job can be business income. discount hotels in BrightonYou report most business income, such as income from the sale ofyour products or services, on Schedule C or C-EZ. But you reportthe income from the sale of business assets, such as land and officebuildings, on other forms instead of Schedule C or C-EZ. Forinformation on selling business assets, see chapter 3. TaxTip: Nonemployee compensation. luxury reservations HamburgBusiness income includesamounts you received in your business that were properly shown onForms 1099-MISC. This includes amounts reported as nonemployeecompensation in box 7 of the form. You can find more information inthe instructions on the back of the Form 1099-MISC you received. Kinds of Income Items That Are Not Income Accounting for Your Income