Nonbusiness Income

Nonbusiness Income

Income a business derives from its investments not directly related to its operations. For example, if a dental office has excess cash and invests it in stocks, its dividends will be treated as nonbusiness income. It is used to calculate the net operating loss deduction.
References in periodicals archive ?
Taxpayers must combine their FIRPTA gain or loss with income, gain, or loss for the tax year from any business actually carried on by the taxpayer in the United States and, if the taxpayer so elects, with other nonbusiness income from U.
The MTC also provides for the allocation of nonbusiness income.
215) If the parent corporation sells all of the stock of the target corporation to a buyer corporation and no election is made for either state's purposes, the transaction generates gain from the sale of stock, which is likely nonbusiness income to the nondomiciliary parent corporation.
Alabama Department of Revenue, which involves the characterization of income from the sale of assets as apportionable business income versus allocable nonbusiness income for state tax purposes.
A corporation's net income for a taxable year is its adjusted federal income (10) plus nonbusiness income allocated to Florida less an exemption.
Nonbusiness income includes dividends, annuities, interest on investments and royalties.
Constitution is not likely to have a major effect, as many states consistently challenge most taxpayers' attempts to classify income as nonbusiness income.
On October 26, 2012, TEI filed the following brief amicus curiae with the Supreme Court of the United States in a case involving the characterization of income from the sale of assets as apportionable business income versus allocable nonbusiness income for state tax purposes.
Royalties may be classified as either business or nonbusiness income.
Review state and local income and franchise tax returns for potential uncertain tax positions such as allocation, apportionment, and business versus nonbusiness income issues.
In the absence of a standardized system for state apportionment formulas, tax savings opportunities may arise from excluding nonbusiness income from state apportionment.