Items Not Included in Self-Employment Income

The following items are not included in self-employment income:

  • Rent from real estate
  • Capital gains on the sale of property (unless the property is held for sale to customers in the ordinary course of business. For example, inventory).
  • Traders who buy and sell for their own account do not treat gains and losses from sales as self-employment income.
  • Dividends and interest on securities held for investment.
    • Dividends earned by dealers in securities and interest on accounts receivable are treated as self-employment income if the securities are not being held for investment.

File your personal and small business taxes (Schedule C)