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
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
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Related Terms
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