Gross income in United States tax law is receipts and gains from all sources less cost of goods sold. Gross income is the starting point for determining Federal and state income tax of individuals, corporations, estates and trusts, whether resident or nonresident.
"Except as otherwise provided" by law, Gross income means "all income from whatever source," and is not limited to cash received. However, tax regulations expand on this and say "all income from whatever source derived, unless excluded by law." The amount of income recognized is generally the value received or which the taxpayer has a right to receive. Certain types of income are specifically excluded from gross income.
The time at which gross income becomes taxable is determined under Federal tax rules, which differ in some cases from financial accounting rules.
Read more about Gross Income: What Is Income, Year of Inclusion, Amount of Income, Exclusions From Gross Income, Source of Income, Further Reading
Famous quotes containing the words gross and/or income:
“I am haunted by interrupted acts,
introspective as a leper, enchanted
by a repulsive clew,
a gross and fugitive movement of the limbs.
Is this the love that shook the lights to flame?”
—Muriel Rukeyser (1913–1980)
“I know everybody’s income and what everybody earns,
And I carefully compare it with the income-tax returns;”
—Sir William Schwenck Gilbert (1836–1911)