Class 2,3; Scope Of Gross Income Flashcards
1
Q
Glenshaw Glass elements of Gross Income
A
- Accession to wealth (you have something today that you didn’t have yesterday
- Clearly realized mere/naked receipt or conversion of property into money or other property)
3.Taxpayer has complete dominion
2
Q
Factors not taken into account when determining whether something qualifies as gross income
IRC §61(a) and Tres. Reg.§1.61 - 1(a)
A
1) The source
2) how the income was realized → form does not matter
3
Q
What does not count as gross income?
A
- Use of property already owned by taxpayer (Independent Life Ins. Co.)
- Loans (based on obligations to repay, negating any accession to wealth)
4
Q
Treasure trove
A
Reportable when you find it
Tres. Reg. § 1.61 - 14