PPT-Chapter 5 Gross Income and Exclusions

2 2 Learning Objectives Apply the concept of realization and explain when taxpayers recognize gross income Understand the distinctions between the various sources of income including income from services and property. Gross Income & Exclusions. Income Tax Fundamentals . 2011 . edition . Gerald . E. . Whittenburg. . Martha Altus-. Buller. Student’s Copy. 2011 . Cengage. Learning. 2. Defining Gross Income. Gross income is “All income from whatever source derived”. Gross Income & Exclusions. Income Tax Fundamentals 2010 edition . Gerald E. . Whittenburg. . Martha Altus-. Buller. Student’s Copy. Gross income is “All income from whatever source derived”. GET A LIFE!. What life did I live?. I had the unfortunate experience of becoming a beautician. For the future life I want to live a beautician does not make enough money. . How much money did I make?. Four Basic Concepts:. Gross Income, Constructive Receipt, Economic Benefit Theory, and Assignment of Income. Chapter 3 The Four Basic Concepts. Has someone received . “. gross income. Managing Taxes. Objectives. Describe the two ways of paying taxes: payroll withholding and estimated taxes.. Identify the three steps involved in calculating federal income taxes.. Understand planning strategies to legally avoid overpayment of income taxes.. Fundamentals of the Deductions. THE EXPENDITURE SHOULD BE INCURRED BY THE ASSESSEE DURING THE PREVIOUS YEAR. IT MUST BE OUT OF TAXABLE INCOME. NOT CLAIMED AS EXPENDITURE UNDER ANY HEAD OF INCOME OR UNDER ANY OTHER PROVISION OF THE ACT. Gross Income & Exclusions. Income Tax Fundamentals 2013. Student Slides. Gerald E. . Whittenburg. . Martha . Altus-. Buller. Steven Gill. 2013 Cengage Learning. Defining Gross Income. Tax code defines gross income as “All income from whatever source derived”. “God Bless the Child” by Chris . Botti. and Paula Cole . “. Money for Nothing” by Dire Straits. . “. Tax Man” by George Harrison. Tax Management. Learning Objectives. LO 9-1 . Describe the purposes of taxes, the different types of taxes, and the principles of progressive and regressive taxes.. PROG. : BSCAC. LEVEL. : 2.2. . YEAR :. 2016. PROG. : BSCAC. LEVEL. : 2.2. . YEAR :. 2016. Preparing Taxes Personal Income Facts in the U.S. The U.S. tax code contains more than 3.7 million words and is more than 70,000 pages in length. Americans spend 7.6 billion hours every year preparing taxes – an average of about 25 hours per person. Question of the Day: Modified Adjusted Gross Income (MAGI) What income counts when determining eligibility for premium tax credits and Medicaid? Elig ibility for premium tax credits — and for the 000DR-501ADate Applicants for the Exemption for Totally and Permanently Disabled Persons Section 196101 FS must complete sign and attach this statement to the exemption application Form DRApplican macroeconomics. The study of economic behavior and decision-making in a nation’s whole economy. Objectives. Explain how gross domestic product (GDP) is calculated. Interpret GDP Data. Identify factors that influence GDP.