Gross income for federal income tax purposes means all income from all sources except for those items specifically excluded by the code prior to any deduction or taxes.
Gross income is the starting point for determining Federal and state income tax of individuals, corporations, estates and trusts, whether resident or nonresident.
Gross income includes wages and salaries, interest, dividends, stock sales, self-employment income, income from business entities, prizes, rents, real estate sales, bartering, babysitting and most other forms of income. Any money that you receive from any source is almost always part of gross income.
If you sell personal property, only the profit (gain) would have to be included in gross income.
If you have reimbursements for employee business expenses based on actual expenses they are not included in gross income.
If you have a repayment of personal money you loaned to family or friends is not included in gross income; however any interest that you charged them would be included.
If you have a house that is provided for the convenience of the employer is not include in gross income.
If you have a gift or inheritance that would not have been taxable to the gifter or decedent, it is not included in gross income.
The courts adopted the accounting concept that measures income only when a realization event occurs for tax purposes.
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