Which of the following is considered business income under tax regulations?

Business income, as defined by tax regulations, refers specifically to income generated from the regular operations of a business. This encompasses revenues earned from selling goods or services. The proceeds from business sales are considered business income because they directly result from the core activities of the business, reflecting its primary function of generating profit through operations.

Capital gains from investments, income from wages, and interest earned from savings accounts do not qualify as business income. Capital gains arise from the increase in value of investments when sold, and while they are income, they are classified differently under tax law. Income from wages pertains to earned income from employment, which is distinct from business income that arises from self-employment or business activities. Finally, interest earned from savings accounts is classified as investment income, again separate from the operational income of a business.

Thus, the correct identification of proceeds from business sales as business income aligns with the regulations governing what constitutes income generated from business activities. Understanding this classification is crucial for accurately reporting income on tax returns.