Question

Gross income includes_____________.a) all income from whatever source derived unless excluded by awb) excluded incomec) deferred incomed) all realized income

Answer 1

Answer:

The correct answer is letter "A": all income from whatever source derived unless excluded by law.

Explanation:

Gross income is the total income of a person before taxes and other changes. Gross income is the basis for determining the taxes an individual has to pay. Gross income is the sum of a person's salary, wages, tips, capital gains, dividends, interest, rents, pensions, and alimony.

The tax definition of Gross Income states it represents all income of individuals regardless of the source derived except those excluded by law.