MGMT 127A Lecture Notes - Lecture 9: Term Life Insurance, Gross Income, Life Insurance
Document Summary
Lecture 9: section 2 and part of section 3. Section 61: gross income is: except otherwise provided in this subtitle, gross income means all income from whatever source derived, including (but not limited to) the following items: Compensation for services including fees, commissions, fringe benefits, and similar items. Income from an interest in an estate or trust: gross income includes income realized in any form whether in money, property, or services o. Supreme court decisions have made it clear- all sources of income are subject to tax unless congress specifically excludes the type of income received. There is no market exchange if you are working for yourself (like mowing your own lawn) If you mow your neighbors lawn and your neighbor mows your lawn, there is an exchange so this counts as income o. If you receive benefits as a condition of employment or for the convenience of the employer, it is not considered income.
