1207.Is interest received by dealers counted as earnings?
If you are a dealer in stocks and securities, the dividends and interest that you receive from stocks and bonds while they are in your inventory are earnings from self-employment. Securities bought by a dealer but not held for resale are not part of the trade or business. They are considered a personal investment. The interest and dividends received do not count as earnings from self-employment.
Note: You are a dealer in stocks and securities if:
You are a merchant with an established place of business;
You regularly engage in buying stocks and bonds in your own name;
You sell stocks and bonds to customers for a profit.
Dealers do not buy for the purpose of obtaining dividends or interest, but for “stock in trade”; as another merchant buys hardware or dresses or groceries.