2a - Gross Income

2a - Gross Income - Federal Individual Income Tax Online...

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Unformatted text preview: Federal Individual Income Tax Online Lecture Series Gross Income Presented by Akore Berliner, CPA Taxable Income Formula Gross Income $x,xxx Less: Exclusions (x,xxx) Gross Income $x,xxx Less: Deductions for AGI (x,xxx) Adjusted Gross Income (AGI) $x,xxx Less: The greater of- Total itemized deductions or the standard deduction (x,xxx) Personal & dependency exemptions (x,xxx) Taxable Income $x,xxx What is Gross Income? Includes ALL income from whatever source derived, unless specifically excluded under the Code Be cautious - Open to interpretation includes taxable and nontaxable Income Similar to gross receipts Form of Gross Income Not always cash! Can be in the form of: Cash In-kind cash equivalents (i.e., property or services) income is equal to FMV of property or services Does not include: a return of capital or receipt borrowed funds Gross Income Sources Personal Services employment or self employment taxable to the person who performs the services Income from property sale or rental of property taxable to the owner of the property Income from Investments Taxable in year of allocation Can have income but no cash or property received Assignment of income is not permitted Recognized vs. Realized Income Realized income is not currently taxed i.e., Economic Appreciation (no property disposition) Recognized Income is currently taxed i.e., Sale of Property (proceeds are collected) Realized income becomes recognized Common Types of Gross Income...
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2a - Gross Income - Federal Individual Income Tax Online...

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