[Topsya]

Who can tell me what is the difference between Ordinary Income (Loss) and Operating Income (Loss)?

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Anonymous]

Ordinary income is a Tax term and Operating income is a GAAP term.

Operating income is net income from the “operating section” of the income statement, which is a component of “income from continuing operations.”

Ordinary income is taxable income subject to ordinary tax rates, as opposed to Capital Gains income, subject to the normally lower capital gains rates.

[Anonymous]

Ordinary income is a Tax term and Operating income is a GAAP term.

Operating income is net income from the “operating section” of the income statement, which is a component of “income from continuing operations.”

Ordinary income is taxable income subject to ordinary tax rates, as opposed to Capital Gains income, subject to the normally lower capital gains rates.

[Topsya]

what about Net OPERATING Loss then, which is a Tax term as far as I know….

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Topsya]

what about Net OPERATING Loss then, which is a Tax term as far as I know….

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Anonymous]

Oh right good point. I wouldn't worry about getting too far down into the details of what generates an NOL deduction for CPA exam purposes. But basically an NOL is generated when you have negative taxable income for the year for a business (could be a C-corp or a 1040 Sch C for example.) In general if Total Income < Total Deductions, you have an NOL.

[Anonymous]

Oh right good point. I wouldn't worry about getting too far down into the details of what generates an NOL deduction for CPA exam purposes. But basically an NOL is generated when you have negative taxable income for the year for a business (could be a C-corp or a 1040 Sch C for example.) In general if Total Income < Total Deductions, you have an NOL.

[Topsya]

🙂 Thanks @bald brawny

I feel like REG is the worst section EVER…

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Topsya]

🙂 Thanks @bald brawny

I feel like REG is the worst section EVER…

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Anonymous]

You're welcome. Send me more tax questions if you have them. Click my username to find me on LinkedIn.

[Anonymous]

You're welcome. Send me more tax questions if you have them. Click my username to find me on LinkedIn.

[Topsya]

Actually, it doesnt let me see your profile because “You and this LinkedIn user don’t know anyone in common

You can only view the profiles of users within your network. However, as you add connections, you may discover people you know in common.”

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Topsya]

Actually, it doesnt let me see your profile because “You and this LinkedIn user don’t know anyone in common

You can only view the profiles of users within your network. However, as you add connections, you may discover people you know in common.”

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[mla1169]

Ordinary income is taxed at the highest rate-all income (including operating income) except capital gains.

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[mla1169]

Ordinary income is taxed at the highest rate-all income (including operating income) except capital gains.

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[Topsya]

Thank you @mla1169

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Author]

Replies