by Sheryl Rowling, CPA
All sources of income are taxable unless there is a specific exception in the law. Some of these exceptions include municipal bond interest, unemployment compensation, the receipt of gifts, and certain gains from the sale of a personal residence. The Internal Revenue Code section 61(a) defines gross income as "all income from whatever source derived, including (but not limited to) the following items [unless specifically excluded]:
- Compensation for services;
- Gross income derived from business;
- Gains derived from dealings in property;
- Alimony and separate maintenance payments;
- Income from life insurance and endowment contracts;
- Income from discharge of indebtedness;
- Distributive share of partnership gross income;
- Income in respect of a decedent; and
- Income from an interest in an estate or trust."
Sheryl Rowling is a San Diego CPA. You can reach her at (858) 627-1400.
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In accordance with IRS Circular 230, the information on this website is not intended or written to be used, and cannot be used as or considered a "covered opinion" or other written tax advice and should not be relied upon for the purpose of avoiding tax-related penalties under the Internal Revenue Code; promoting, marketing, or recommending to another party any transaction or tax-related matter(s) addressed herein; for IRS audit, tax dispute or other purposes.