@pnored wrote:
.....I have heard good cases for reporting it in both areas.
The best case is presented in the Schedule C instructions for Line 6.
Report on line 6 business income not reported elsewhere in Part I. Be sure to include amounts from the following.
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Finance reserve income.
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Scrap sales.
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Bad debts you recovered.
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Interest (such as on notes and accounts receivable).
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State gasoline or fuel tax refunds you received in 2020.
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Any amount of credit for biofuel claimed on line 2 of Form 6478.
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Any amount of credit for biodiesel and renewable diesel claimed on line 8 of Form 8864.
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Credit for federal tax paid on fuels claimed on your 2019 Form 1040 or Form 1040-SR.
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Prizes and awards related to your trade or business.
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Amounts you received in your trade or business as shown on Form 1099-PATR.
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Any amount of credit for qualified sick and family leave wages. See Form(s) 941 for 2020, lines 11b and 13c, and Form 944 for 2020, lines 8b and 10d.
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Other kinds of miscellaneous business income.
Note that the instructions for interest specifically do not mention bank account interest, interest from CDs, etc. but, rather, do mention interest on notes and accounts receivable which would be business income because the business is collecting interest on money it lent or credit it extended, not interest from investing business profits.
