Chapter 14: Gross Income (Inclusions and Exclusions)

In this section

• Items Included in Gross Income (Wages, Dividends, Pensions)
  Deep dive on how wages, dividends, and pension income must be included in gross income for individual taxation, including ordinary vs. qualified dividends and practical wage reporting insights.
• Interest Income and Dividends (Taxable vs. Non-Taxable)
  Discover the tax implications of interest income and dividend payments, including municipal vs. corporate bonds, qualified dividends, and partial exclusions, with practical examples and best practices.
• Capital Gains and Losses (Short-Term vs. Long-Term) - Key Rules for Netting and Carryover
  A comprehensive guide to short-term vs. long-term capital gains, their distinct holding periods, netting processes, and strategic carryover rules for individuals under U.S. tax law.
• Exclusions (Gifts, Inheritances, Life Insurance Proceeds, Scholarships)
  Comprehensive coverage of statutory exclusions from gross income including gifts, inheritances, life insurance proceeds, scholarships, and fringe benefits for the REG CPA exam.
• Kiddie Tax (Unearned Income of Minor Children)
  Explore the Kiddie Tax, including the threshold for unearned income, child’s standard deduction, and parental rate calculations under U.S. tax law.