What does the tax code mean by the term “income”? The tax law doesn’t care whether you receive income from your business, W2 wages paid by your employer or from an investment you made 3 years ago. It is taxable to you as an individual.
Definition of Business Income
Besides the obvious, receipt of cash, stocks and bonds, income for tax purposes can take many forms.
Goods and services. Goods, property or services received are within the definition of income.
Constructive income. As soon as money or property is available to you (constructive receipt), or is credited to your account, it becomes income-whether you take it or not. For instance, if you provided services in November 2015, received the check and wait until Januar...