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INCBUS
Non-farm business income
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Description

INCBUS reports the respondent's net pre-income-tax non-farm business and/or professional practice income for the previous calendar year. This is the amount earned after subtracting business expenses from gross receipts. It includes any money earned working for one's own concern(s). It does not include non-cash benefits (such as the free consumption of one's own product or service), nor does it include any income earned as an employee, which is contained in INCWAGE.

Income from incorporated enterprises was specifically excluded. Persons who work for corporations are considered "employees," even if they are among the owners of the corporation; income earned as a corporate employee was to be reported as wage/salary income (INCWAGE). On the other hand, owners of unincorporated businesses who pay themselves "salaries" were to report these salaries as business income. Some respondents may have missed this distinction, which was first made in 1970. Amounts are expressed in contemporary dollars; users must adjust for inflation (See INCTOT for Consumer Price Index adjustment factors).