Gross Income


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Related to Gross Income: cash flow, Taxable income, Debt To Income Ratio

Gross Income

The financial gains received by an individual or a business during a fiscal year.

For Income Tax purposes, gross income includes any type of monetary benefit paid to an individual or business, whether it be earned as a result of personal services or business activities or produced by investments and capital assets. The valuation of gross income is the first step in computing whether any federal or state income tax is owed by the recipient.

gross income

n. in calculating income tax, the income of an individual or business from all sources before deducting allowable expenses, which will result in net income. (See: income tax)

References in periodicals archive ?
Other courts have permitted a more favorable outcome, allowing tax-payers to include in gross income only the net amount they received after deducting attorney's fees.
Section 104(a)(2) provides that gross income does not include "the amount of any damages received (whether by suit or agreement and whether as lump sum or periodic payments) on account of personal injuries or sickness.
Additionally, Congress increased the adjusted gross income EIC cutoff for joint filers by $1,000 as a gesture to couples affected by the marriage penalty,
Payments under P represent gross income to the recipients and C is subject to the Sec.
Helvering (35-1 USTC [paragraph] 9043), 293 US 465,469 (1935), argued the $129,000 of compensation John returned to JMA was excludible from gross income because the couple was entitled to structure their transactions to pay the least amount of federal income tax.
The effect of many Code sections affecting QBUs in hyperinflationary economies depends upon the definition of gross income -- including, among others, section 954(b)(3)(B) (the full inclusion rule), section 954(b)(5) (related party interest), section 6501(e) (the extended statute of limitations based on substantial omissions of gross income), and section 1296 (containing the rules on passive foreign investment companies).
On a global basis, Euro RSCG's 1999 worldwide gross income of $1,269 billion and worldwide capitalized volume of $9.
IRC section 451 provides that an item of gross income is reported in the tax year in which a taxpayer receives it.
The effect of this allocation would be tempered, however, because other methods (such as the gross income or cost-of-sales method) are generally used for non-interest expenses.
The new laws create two tax credits for educational expenses -- the Hope Scholarship credit and the Lifetime Learning credit -- but these credits are only fully available to single income earners with adjusted gross incomes of less than $40,000 and married couples filing jointly with adjusted gross incomes of less than $80,000.
Based on IRC section 108, the corporation excluded the COD income from its gross income.