Question: Discuss and define gross income from business activities and the associated trade or business deductions available to offset gross income from business activities.To further drive those points home, your assignment this week is to interview a business owner (perhaps your boss or a friend or family member who has his or her own business) and provide the following information obtained from your interview.
1. Provide the name and contact info of the person interviewed, including his or her position and/or ownership in the business.
2. Provide the name of the business or sole proprietorship.
3. What is the main source of revenue (gross income) in this business? (Gross income might be from the sale of goods, performance of services, use of property, etc.)
4. What IRC Code § provides for the inclusion of this source of revenue into gross income?
5. What are the three most significant deductions claimed by this business? (The deductions might include payroll, materials, rent, etc.)
6. What IRC Code § provides for the deductibility of trade or business expenses?
7. Can you think of any deductions the business owner might be missing?