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scottakelly1
New Member

Does "business income" mean "revenue" or "profit?"

ie do I deduct expenses and THEN put that number in my business income?
1 Reply
PeterM
New Member

Does "business income" mean "revenue" or "profit?"

Business income is the total of revenue earned PRIOR to deducting your business expenses.

Business Income - Business Expenses = Net Income

In Turbo Tax, you'd enter your total income and then your total expenses. The program will then calculate the Net Income for you.

You operate at a "profit" when your total business income exceeds your total business expenses. Conversely, you operate at a "loss" when your total business expenses exceed your total business income.

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