Prob a dumb question, but…..

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    Topic
  • #184110
    Topsya
    Member

    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

Viewing 15 replies - 1 through 15 (of 20 total)
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  • #523476
    Anonymous
    Inactive

    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.

    #523519
    Anonymous
    Inactive

    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.

    #523478
    Topsya
    Member

    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

    #523521
    Topsya
    Member

    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

    #523480
    Anonymous
    Inactive

    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.

    #523523
    Anonymous
    Inactive

    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.

    #523482
    Topsya
    Member

    🙂 Thanks @bald brawny

    I feel like REG is the worst section EVER…

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

    #523525
    Topsya
    Member

    🙂 Thanks @bald brawny

    I feel like REG is the worst section EVER…

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

    #523484
    Anonymous
    Inactive

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

    #523527
    Anonymous
    Inactive

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

    #523486
    Topsya
    Member

    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

    #523529
    Topsya
    Member

    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

    #523488
    mla1169
    Participant

    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.

    #523531
    mla1169
    Participant

    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.

    #523490
    Topsya
    Member

    Thank you @mla1169

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

Viewing 15 replies - 1 through 15 (of 20 total)
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