Hi,

I want to agree with your response that it should not be reported on Schedule C (so that it is not counted for SE tax purpose), but how does your response reconcile with the following excerpt from Publication 334 (2024) Tax Guide for Small Business, where it states:

Additions to Gross Profit

If your business has income from a source other than its regular business operations, enter the income on line 6 of Schedule C and add it to gross profit. The result is gross business income. Some examples include income from an interest-bearing checking account, income from scrap sales, income from certain fuel tax credits and refunds, and amounts recovered from bad debts.

Thanks!