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Other Income

Revenue from sources outside your primary business operations — interest earned, gains on asset sales, rental income, or refunds.

Other Income Definition

Other income (also called non-operating income) is revenue that comes from activities outside your core business operations. On a P&L statement, it appears below operating income to keep it separate from your main revenue.

Examples of Other Income

  • Interest earned on savings or money market accounts
  • Gains on sale of equipment or investments
  • Rental income from property you own
  • Insurance claim payouts
  • Vendor rebates or refunds
  • Foreign exchange gains
  • Why It's Separated

    Other income is separated from operating revenue because it doesn't reflect the health of your core business. A company could have declining sales but look profitable because of a one-time asset sale — separating these gives a clearer picture.

    How Other Income Shows Up in QuickBooks

    Categorize these transactions to "Other Income" type accounts in QBO. They appear below the Operating Income line on your P&L. Common accounts: Interest Earned, Gain on Sale of Assets, Other Miscellaneous Income.

    FAQ

    Q: Is other income taxable?

    A: Yes — other income is fully taxable. It's reported on your business tax return just like operating revenue.

    Related Terms

  • Revenue
  • Net Income
  • Non Operating Income
  • Interest Income
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    Related Terms

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