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:
“The amount of women in London who flirt with their own husbands is perfectly scandalous. It looks so bad. It is simply washing one’s clean linen in public.”
—Oscar Wilde (1854–1900)
“Excess of joy is harder to bear than any amount of sorrow.”
—Honoré De Balzac (1799–1850)
“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)