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.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.

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)

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.
References in periodicals archive ?
For instance, if a person has a full-time job but in his sparetime provides exam tutoring with, say, PS3,000 of gross income and incurs PS500 expenses, under the trading allowance regime, their taxable profit would either be gross income less expenses of PS2,500.
For example, consider the situation in which a taxpayer has a capital contribution and must determine whether receipt requires the taxpayer to recognize gross income, which creates basis in a depreciable asset, or whether the taxpayer does not have gross income and has no basis in a depreciable asset.
The top 10% of households paid an average 35% of their gross income in taxes, some PS37,287 a year, with income tax accounting for 19.1% of the money paid to the Exchequer.
The IRS reasoned that because IRC Section 61(a)'s standard definition of "gross income" includes "gains derived from dealings in property," and because such gains are ordinarily calculated by subtracting basis from the amount realized, "outside the context of a trade or business, any basis overstatement that leads to an understatement of gross income under Section 61(a) constitutes an omission from gross income for purposes of Sections 6501(e)(1) (A) and 6229(c)(2)." [citations omitted].
(5) Married filing separately--if neither spouse itemizes, a return must be filed if gross income equals or exceeds $9,350 in 2010 (if blind or elderly--$10,450; if blind and elderly--$11,550).
* All other damages received are included in gross income in full, including the amounts that may have been paid directly to the attorneys.
If only certain executives are eligible to receive an early distribution of their deferrals that is not permitted under the new rules, however, only those executives would be required to include in their gross income currently all of the amounts that were deferred for them under the plan.
(5) She cannot deduct these medical expenses because 7.5 percent of adjusted gross income (exclusion) is $2,694.
The IRS's Office of Chief Counsel (OCC) advised that gambling winnings that a taxpayer surrenders to a state as part of a program intended to help treat gambling addiction do not have to be reported by a casino to the taxpayer on Form W-2G, Certain Gambling Winnings, and are not includible in gross income by the =payer.
It can deduct IRC section 62 expenses from its gross income to arrive at adjusted gross income and is then permitted the section 63 itemized deductions from adjusted gross income.
2004-55, IRB 2004-26, June 28, 2004, considered the following issue: Under an "Amended Plan" (described below), are long-term disability benefits received by an employee, who becomes disabled, excludable from the employee's gross income under Sec.
In determining adjusted gross income, a deduction from gross income is permitted under section 62(a)(2)(A) for expenses paid or incurred by a taxpayer in connection with the performance of services as an employee under an "accountable" employer reimbursement plan.