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 ?
However, while the lowered AGI threshold may provide an opportunity to take deductions often limited by the AGI floor, they are effectively deducted only when they offset, but do not exceed, nonbusiness income.
The state Supreme Court (32) denied the DOR's petition for leave to appeal the Illinois Appellate Court's decision that gain on the sale of a foreign insurance company's stock was nonbusiness income, because its IRC Sec.
78) These changes adopted the nonbusiness income concept for and apportionment factor treatment of business/nonbusiness income items.
An Appellate Court affirmed (24) the trial court's decision that gain on the sale of a foreign insurance company's stock was nonbusiness income under the Blessing/White (25) modified functional test, because the taxpayer's IRC Sec.
Pennsylvania Court Case on Nonbusiness Income and NOL Carryovers
Nonbusiness income is taxed at the standard Ohio graduated rates capped at 4.
However, the FDOR did audit the FCIT amended return for the tax year ending December 31, 2009, on March 14, 2016, and disagreed with a nonbusiness income subtraction taken by the Florida taxpayer relating to the sale of a subsidiary corporation.
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.
Nonbusiness income includes dividends, annuities, interest on investments and royalties.
Nonbusiness income is all income not derived from a trade or business, such as dividends, interest, and nonbusiness capital gains.
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.