Business Income Fundamentals (Sections 9-37)

piano caribbean, reggae k-pop, arabic pop · 3:07

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Lyrics

[Verse 1]
When a corporation earns its daily bread
Revenue flows through channels overhead
Active business versus passive streams
Property income splits the seams
Rental payments, interest gains
Different buckets, different chains

[Chorus]
Business income climbs the ladder
Property income gets much fatter
Deduct what's reasonable and true
Profit calculation's calling you
Sections nine through thirty-seven
Business fundamentals, accounting heaven

[Verse 2]
Capital expenditures won't disappear
They depreciate year after year
Current expenses hit today
Meals and entertainment? Fifty percent they pay
Home office costs must allocate
Personal use can't participate

[Chorus]
Business income climbs the ladder
Property income gets much fatter
Deduct what's reasonable and true
Profit calculation's calling you
Sections nine through thirty-seven
Business fundamentals, accounting heaven

[Bridge]
Inventory methods FIFO flow
LIFO's banned, weighted average grows
Bad debts written, reserves denied
Prepaid expenses must divide
Source deductions, matching principle
Income recognition's never simple

[Verse 3]
Adventure, concern in nature of trade
Business income classification's made
Profit motive drives the test
Frequency and commonality blessed
Integration with other streams
Validates your business schemes

[Final Chorus]
Business income climbs the ladder
Property income gets much fatter
Deduct what's reasonable and true
Profit calculation's calling you
Sections nine through thirty-seven
CPA knowledge, accounting heaven

[Outro]
Calculate the bottom line
Business income's by design

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