What’s the difference between “income” and profit”?

Question

And, more specifically, why are corporations and people taxed differently? Both have money coming in and going out for necessities

Does that make sense?

In: 0

Answer 1

Suppose you buy something for $10 and sell it for $15.

You made an income of $15. Your profit was $5.

That’s the difference between income and profit.

Corporations and people are taxed differently because it wouldn’t make sense to use the same system. But businesses are pretty much taxed in the same way as people, it’s just more complicated and means there’s a lot more rules when it comes to businesses.