Class 2,3; Scope Of Gross Income

Question 1

Glenshaw Glass elements of Gross Income

Answer 1

1. Accession to wealth (you have something today that you didn’t have yesterday
2. Clearly realized mere/naked receipt or conversion of property into money or other property)
   3.Taxpayer has complete dominion

Question 2

Factors not taken into account when determining whether something qualifies as gross income
IRC §61(a) and Tres. Reg.§1.61 - 1(a)

Answer 2

1) The source
2) how the income was realized → form does not matter

Question 3

What does not count as gross income?

Answer 3

1. Use of property already owned by taxpayer (Independent Life Ins. Co.)
2. Loans (based on obligations to repay, negating any accession to wealth)

Question 4

Treasure trove

Answer 4

Reportable when you find it

Tres. Reg. § 1.61 - 14