Amount of Income
For a cash basis taxpayer, the measure of income is generally the amount of money or fair market value of property received. For an accrual basis taxpayer, it is the amount the taxpayer has a right to receive.
Certain specific rules apply, including:
- Constructive receipt,
- Deferral of income from advance payment for goods or services (with exceptions),
- Determination what portion of an annuity is income and what is return of capital,
The value of goods or services received is included in income in barter transactions.
Read more about this topic: Gross Income
Famous quotes containing the words amount of, amount and/or income:
“Complainers change their complaints, but they never reduce the amount of time spent in complaining.”
—Mason Cooley (b. 1927)
“There are a thousand hacking at the branches of evil to one who is striking at the root, and it may be that he who bestows the largest amount of time and money on the needy is doing the most by his mode of life to produce that misery which he strives in vain to relieve.”
—Henry David Thoreau (1817–1862)
“Happy are those who find wisdom, and those who get understanding, for her income is better than silver, and her revenue better than gold. She is more precious than jewels, and nothing you desire can compare with her. Long life is in her right hand; in her left hand are riches and honor. Her ways are ways of pleasantness, and all her paths are peace. She is a tree of life to those who lay hold of her; those who hold her fast are called happy.”
—Bible: Hebrew, Proverbs 3:13-18.