Federal Taxation Week 2 lecture 2

In the previous lesson we discussed Gross Income: Concepts and Inclusions. In this lesson we will discuss Gross Income: Exclusions. Next Slide:   

2.            The previous lessons discussed the concepts and judicial doctrines that affect the determination of gross income. If an income item is within the all-inclusive definition of gross income, the item can be excluded only if the taxpayer can locate specific authority for doing so. This session focuses on the exclusions that Congress has authorized.  Next Slide: 

3.            After completing this lesson, you should be able to: Understand that statutory authority is required to exclude an item from gross income. Identify the circumstances under which various items are excludible from gross income. Determine the extent to which receipts can be excluded under the tax benefit rule, and  Describe the circumstances under which income must be reported from discharge of indebtedness. Next Slide:      
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