J.K. Lasser's Small Business Taxes 2023

CHAPTER 4Income or Loss from Business Operations

• Business Income
• Income for Service Businesses
• Income from the Sale of Goods
• Income from Farming
• Income from Commercial Fishing
• Income from Rentals
• Income from Government Programs
• Investment‐Type Income
• Miscellaneous Business Income
• State Income Taxes on Business Income
• Noncorporate Excess Business Losses
• Net Operating Losses
• Other Limitations on Business Losses
• Income Earned Abroad

Alert

At the time this book was published, Congress was considering tax changes that could affect 2022 tax returns and planning for 2023. Check the online Supplement in February 2023 at www.jklasser.com or www.BigIdeasForSmallBusiness.com to see what changes have been enacted and when they become effective.

The fees you earn for your services or the receipts you collect from the sale of goods are the bread‐and‐butter income of your business. Hopefully, your pricing policies are realistic and you have a strong customer or client base so that you can make a profit.

Even if sales are healthy, expenses can outrun receipts, especially in inflationary times, resulting in a loss for the business. You will not know whether you have a net income or loss until all of the expenses discussed throughout this book have been taken into account. Income and loss for accounting purposes (referred to as “book income”), which reflects the actual money in and out of the business, may not be the same as income and loss for tax purposes. The reason: Some ...