- ADJUSTED GROSS INCOME
- see adjusted gross income
- CASH EQUIVALENT DOCTRINE
- the doctrine that property received by a taxpayer is includable in income if it can be converted into cash. The amount of income is the amount of such cash.
- CONSTRUCTIVE RECEIPT OF INCOME
- a doctrine under which a taxpayer is required to include [in gross income] amounts that – despite not being actually received – are deemed received during the tax year. Thus, there is constructive receipt when income is made available to a taxpayer without substantial restriction/condition on the taxpayer’s right to exercise control over the income. Under this theory, interest credited on a savings account must be included in income even though the taxpayer does not withdraw it, since he/she had the right to withdraw it. The doctrine is to be distinguished from the cash equivalent doctrine.
- GROSS INCOME
- the total of the taxpayer’s income from any source – except items that are: (i) specifically excluded by the IRC; and (ii) not subject to tax (eg, capital income; fringe benefits).
- IMPUTED INCOME
- economic benefit that a taxpayer obtains through performance of his/her own services (or through the use of his/her own property). In general, imputed income is not subject to INCOME TAX. For example, if a taxpayer is a plumber and repairs his/her own toilet, such repair service is not subject to tax.
- INCOME IN RESPECT OF A DECEDENT
- income that is earned by a taxpayer before his/her death but received by – and taxed to – the taxpayer’s heirs (or personal representatives).
- ORDINARY INCOME
- income that is fully subject to ordinary income tax rates – as distinguished from income that is subject to special deductions for capital gains/losses.
- TAXABLE INCOME
- gross income that has been reduced by allowable deductions (eg, standard; itemized).
- Froogled By:
- Elias Makere, FSA, MAAA
- Last Froogled:
INCOME
Feel free to use it throughout your financial/insurance life.
Sincerely,
www.FroogleMe.com
