Tax Concept Of Income Administrative convenience concept the economic concept is considered too subjective. objectivity is achieved at the price of equity
Tax Concept Of Income • Administrative convenience concept – the economic concept is considered too subjective. – Objectivity is achieved at the price of equity
Tax Concept Of Income Wherewithal to pay concept A tax should be collected when the taxpayer can most easily pay
Tax Concept Of Income • Wherewithal to pay concept – A tax should be collected when the taxpayer can most easily pay
Gross ncome Defined Section 61a defines gross income as all income from whatever source derived, including(but not limited to) the following items Compensation for services, fees commissions and similar items Gross income derived from business Gains from dealings in property Interest
Gross Income Defined • Section 61(a) defines gross income as “all income from whatever source derived,” including (but not limited to) the following items: – Compensation for services, fees, commissions, and similar items – Gross income derived from business – Gains from dealings in property – Interest
Gross Income Deffined Rents Royalties Dividends Alimony and separate maintenance agreements Annuities Life insurance and endowments Pensions Income from discharge of indebtedness Distributive share from partnership Income in respect of a decedent Income from an interest in an estate or trust
Gross Income Defined – Rents – Royalties – Dividends – Alimony and separate maintenance agreements – Annuities – Life insurance and endowments – Pensions – Income from discharge of indebtedness – Distributive share from partnership – Income in respect of a decedent – Income from an interest in an estate or trust