In short
Gross income is all income from whatever source derived, unless a specific provision excludes it. It includes wages, business income, interest, dividends, rents, gains and gambling winnings.
Key takeaways
- Exclusions include gifts and inheritances, life insurance death benefits and municipal bond interest.
- Income is taxable even if it isn't received in cash, for example bartered services.
- Adjustments then reduce gross income to adjusted gross income.
Where it's tested
REG: Individual Taxation: Gross Income — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Which of the following items is included in a taxpayer's federal gross income?