Gross business receipts for Social Security purposes include, among other things:
Professional fees received;
Compensation for services (other than as an employee);
Pay for work done on contract; and
Income from the sale, exchange, or conversion of goods held for sale in the ordinary course of business.
Gross business receipts do not include:
Income from the sale, exchange, or conversion of business assets that are not part of business inventory, such as delivery trucks and office equipment;
Dividends, interest, and rental income from real property; or
Gains and losses from the sale or exchange of capital assets, except those realized in the course of business by an options or commodities dealer.
Note: In computing gross income, the cost of goods that a person takes from the business for personal and family use must be excluded from the total amount of merchandise bought for sale.
Last Revised: Nov. 2, 2005