What is Schedule C net income (Business income)? 1. Paul sells real estate in the evening and on weekends (considered an active trade or business). He runs his business from a rental office he shares with several other realtors. Paul has been operating in a business-like way since 2004 and has always shown a profit. He had the following income and expenses from his business: Commissions earned $21,250 Expenses: Advertising Telephone Real estate license Rent Utilities 2,200 95 130 6,000 600 This real estate activity qualifies as a trade or business under the Internal Revenue Code for purposes of the Qualified Business Income deduction.