CHAPTER 5 GROSS INCOME EXCLUSIONS
Gross Income - Exclusions
Exclusions: do not confuse with deductions.
Common Exclusions from Gross Income
Gifts and Inheritances
o A gift, bequest, or inheritance is excluded from gross income.
o Donor does not receive a
Chapter 8 Deductions: Itemized Deductions
Requirements for the deduction
Many types of medical expenses can be deduct as itemized deductions.
Allowable only to individuals and only for medical expenses actually paid during the year, reg
Chapter 1: Introduction to Federal Taxation and Understanding the Federal Tax Law
Sources of Revenue
a. Types of Taxes
i. Income taxes
Individual Income Taxes
Major sources of revenues are the tax on individuals
To be subject: just have