SSA logo: link to Social Security Online home1202. What are gross business receipts?

Gross business receipts for Social Security purposes include, among other things:

  1. Professional fees received;

  2. Compensation for services (other than as an employee);

  3. Pay for work done on contract; and

  4. Income from the sale, exchange, or conversion of goods held for sale in the ordinary course of business.

Gross business receipts do not include:

  1. Income from the sale, exchange, or conversion of business assets that are not part of business inventory, such as delivery trucks and office equipment;

  2. Dividends, interest, and rental income from real property; or

  3. 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