The Tax Court held that in determining whether the six-year statute of limitation on assessment due to a 25% omission from gross income
applied, only the gains, rather than the full amount realized, on the sale of the taxpayers' investment assets are taken into account.
and, therefore, do not add to total adjusted gross income
The ruling eliminated an existing division in the circuit courts and required taxpayers to include in gross income
all litigation proceeds, including any amount that went to the lawyers under a contingent fee arrangement.
Interest and Additional Tax on Amounts Included in Gross Income
These savings are even more dramatic for seniors with gross incomes
of $50,000 +.
Sales revenue of dyeing business increased by $4,180,000 USD, gross income
increased by $610,000 USD.
The final regulations define gross income
, as it relates to a trade or business, as "the total of the amounts received or accrued from the sale of goods or services, to the extent required to be shown on the return, without reduction for the cost of those goods or services" (Regs.
If an employee elects after-tax treatment, the employer allocates the appropriate portion of the group premium to that employee and includes that amount in the employee's gross income
for the year in which the payments are made (i.
Specifically, because employee expenses incurred under a nonaccountable plan may not be taken as a deduction from AGI, amounts received are required to be included in the employee's gross income
EXAMPLE: Mildred, a 401(k) participant, earns $30,000 a year in adjusted gross income
He ruled that the Legislature's decision to accept a "definition of income as adjusted gross income
does not violate the Equal Protection clause since it is reasonably related to the legislative scheme as well as the intent of the Reform Act.
The value of the easement did not exceed the trust's gross income
for the year of the contribution.