Taxpayers need not include an income item in gross income unless there is a specific tax provision requiring the taxpayer to include the income item in gross income.Tax laws are based on the all-inclusive income concept.Under this concept,gross income generally includes all realized income from whatever source derived.

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Under the all-inclusive income concept, taxpayers must include all realized income in gross income unless a specific tax provision excludes it.

Taxpayers Need Not Include an Income Item in Gross Income