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The Nutty Boys Nut Butter Company is about to diversify into an entirely new market-jellies and jams. This move will create the need for several new positions in the production and marketing departments. However, the production technologies and the marketing environment in this new market are very different than in Nutty Boys' traditional market. The company is likely to rely on external sources to fill many of the positions created by its diversification.
Self-employment Income
Income derived from running a business as a sole proprietor, independent contractor, or freelancer, as opposed to earning a salary or wages from an employer.
Section 179 Expense
A section of the IRS tax code allowing businesses to deduct the full purchase price of qualifying equipment and/or software within a tax year.
Separately Stated
Items on a tax return or financial statement that are listed individually to ensure proper treatment under tax laws or accounting rules.
Ordinary Income
Income earned from providing services or the sale of goods, as opposed to capital gains or investment income, taxed at standard rates.
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