(a) General definition
Except as otherwise provided in this subtitle, gross income means all income from whatever source derived, including (but not limited to) the following items:
(1)
Compensation for services, including fees, commissions, fringe benefits, and similar items;
(2)
Gross income derived from business;
(3)
Gains derived from dealings in property;
(4)
Interest;
(5)
Rents;
(6)
Royalties;
(7)
Dividends;
(8)
Annuities;
(9)
Income from life insurance and endowment contracts;
(10)
Pensions;
(11)
Income from discharge of indebtedness;
(12)
Distributive share of partnership gross income;
(13)
Income in respect of a decedent; and
(14)
Income from an interest in an estate or trust.
(b) Cross references
(Aug. 16, 1954, ch. 736, 68A Stat. 17; Pub. L. 98–369, div. A, title V, § 531(c), July 18, 1984, 98 Stat. 884; Pub. L. 115–97, title I, § 11051(b)(1)(A), Dec. 22, 2017, 131 Stat. 2089.)
Editorial Notes
Amendments
2017—Subsec. (a)(8) to (15). Pub. L. 115–97 redesignated pars. (9) to (15) as (8) to (14), respectively, and struck out former par. (8) which read as follows: “Alimony and separate maintenance payments;”.
1984—Subsec. (a)(1). Pub. L. 98–369 inserted reference to fringe benefits.
Statutory Notes and Related Subsidiaries
Effective Date of 2017 Amendment
Pub. L. 115–97, title I, § 11051(c), Dec. 22, 2017, 131 Stat. 2090, provided that:
“The amendments made by this section [amending this section and sections 62, 121, 152, 219, 220, 223, 382, 408, 3402, 6724, and 7701 of this title and repealing sections 71, 215, and 682 of this title] shall apply to—
“(1)
any divorce or separation instrument (as defined in section 71(b)(2) of the Internal Revenue Code of 1986 as in effect before the date of the enactment of this Act [Dec. 22, 2017]) executed after December 31, 2018, and
“(2)
any divorce or separation instrument (as so defined) executed on or before such date and modified after such date if the modification expressly provides that the amendments made by this section apply to such modification.”
Effective Date of 1984 Amendment
Amendment by Pub. L. 98–369 effective Jan. 1, 1985, see section 531(h) of Pub. L. 98–369, set out as an Effective Date note under section 132 of this title.
Termination Date of 1978 Amendment
Pub. L. 95–615, § 210(a), Nov. 8, 1978, 92 Stat. 3109, provided that:
“Title I of this Act [probably means sections 1 to 8 of Pub. L. 95–615, see Short Title of 1978 Amendment note under section 1 of this title] (other than sections 4 and 5 thereof) [amending section 167 of this title, enacting provisions set out as notes under this section and sections 61 and 62 of this title, and amending provisions set out as notes under sections 117, 167, and 382 of this title] shall cease to have effect on the day after the date of the enactment of this Act [Nov. 8, 1978].”
Regulations
Pub. L. 95–427, § 1, Oct. 7, 1978, 92 Stat. 996, as amended by Pub. L. 96–167, § 1, Dec. 29, 1979, 93 Stat. 1275; Pub. L. 97–34, title VIII, § 801, Aug. 13, 1981, 95 Stat. 349; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
“(a) In General.—
No fringe benefit regulation shall be issued—
“(1)
in final form on or after May 1, 1978, and on or before December 31, 1983, or
“(2)
in proposed or final form on or after May 1, 1978, if such regulation has an effective date on or before December 31, 1983.
“(b) Definition of Fringe Benefit Regulation.—
For purposes of subsection (a), the term ‘fringe benefit regulation’ means a regulation providing for the inclusion of any fringe benefit in gross income by reason of section 61 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954].”
Pub. L. 95–615, § 3, Nov. 8, 1978, 92 Stat. 3097, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that no regulations be issued in final form on or after Oct. 1, 1977, and before July 1, 1978, providing for inclusion of any fringe benefit in gross income by reason of section 61 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], ceased to have effect on the day after Nov. 8, 1978, pursuant to section 210(a) of that Act.
No Gain Recognized From Net Gifts Made Before March 4, 1981
Pub. L. 98–369, div. A, title X, § 1026, July 18, 1984, 98 Stat. 1031, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
“(a) In General.—
In the case of any transfer of property subject to gift tax made before March 4, 1981, for purposes of subtitle A of the Internal Revenue Code of 1986 [formerly I.R.C. 1954, 26 U.S.C. 1 et seq.], gross income of the donor shall not include any amount attributable to the donee’s payment of (or agreement to pay) any gift tax imposed with respect to such gift.
“(b) Gift Tax Defined.—
For purposes of subsection (a), the term ‘gift tax’ means—
“(1)
the tax imposed by chapter 12 of such Code [26 U.S.C. 2501 et seq.], and
“(2)
any tax imposed by a State (or the District of Columbia) on transfers by gifts.
“(c) Statute of Limitations.—
If refund or credit of any overpayment of tax resulting from subsection (a) is prevented on the date of the enactment of this Act [July 18, 1984] (or at any time within 1 year after such date) by the operation of any law or rule of law (including res judicata), refund or credit of such overpayment (to the extent attributable to subsection (a)) may nevertheless be made or allowed if claim therefor is filed within 1 year after the date of the enactment of this Act.”
Payment-in-Kind Tax Treatment Act of 1983
Pub. L. 98–4, Mar. 11, 1983, 97 Stat. 7, as amended by Pub. L. 98–369, div. A, title X, § 1061(a), July 18, 1984, 98 Stat. 1046; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 100–647, title VI, § 6252(a)(1), Nov. 10, 1988, 102 Stat. 3752, provided that:
[Pub. L. 98–369, div. A, title X, § 1061(b), July 18, 1984, 98 Stat. 1047, provided that:
“The amendments made by this section [amending Pub. L. 98–4 set out above] shall apply with respect to commodities received for the 1984 crop year (as defined in section 5(a)(2) of the Payment-in-Kind Tax Treatment Act of 1983 [Pub. L. 98–4, set out above] as amended by subsection (a)).”
]Cancellation of Certain Student Loans
Pub. L. 94–455, title XXI, § 2117, Oct. 4, 1976, 90 Stat. 1911, as amended by Pub. L. 95–600, title I, § 162, Nov. 6, 1978, 92 Stat. 2810; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that no amount be included in gross income of an individual for purposes of 26 U.S.C. 61 by reason of the discharge made before Jan. 1, 1983 of the indebtedness of the individual under a student loan if the discharge was pursuant to a provision of the loan under which the indebtedness of the individual would be discharged if the individual worked for a certain period of time in certain geographical areas or for certain classes of employers.
Regulations Relating to Tax Treatment of Certain Prepublication Expenditures of Publishers
Pub. L. 94–455, title XXI, § 2119, Oct. 4, 1976, 90 Stat. 1912, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
“(a) General Rule.—
With respect to taxable years beginning on or before the date on which regulations dealing with prepublication expenditures are issued after the date of the enactment of this Act [Oct. 4, 1976], the application of sections 61 (as it relates to cost of goods sold), 162, 174, 263, and 471 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] to any prepublication expenditure shall be administered—
“(1)
without regard to Revenue Ruling 73–395, and
“(2)
in the manner in which such sections were applied consistently by the taxpayer to such expenditures before the date of the issuance of such revenue ruling.
“(b) Regulations To Be Prospective Only.—
Any regulations issued after the date of the enactment of this Act [Oct. 4, 1976] which deal with the application of sections 61 (as it relates to cost of goods sold), 162, 174, 263, and 471 of the Internal Revenue Code of 1986 to prepublication expenditures shall apply only with respect to taxable years beginning after the date on which such regulations are issued.
“(c) Prepublication Expenditures Defined.—
For purposes of this section, the term ‘prepublication expenditures’ means expenditures paid or incurred by the taxpayer (in connection with his trade or business of publishing) for the writing, editing, compiling, illustrating, designing, or other development or improvement of a book, teaching aid, or similar product.”
Reimbursement of Moving Expenses of Employees of Certain Corporations Excluded From Gross Income; Claim for Refund or Credit; Limitations; Interest
Pub. L. 86–780, § 5, Sept. 14, 1960, 74 Stat. 1013, provided for the exclusion from gross income of any amount received after Dec. 31, 1949, and before Oct. 1, 1955, by employees of certain corporations as reimbursement for moving expenses, and the refund or credit of any overpayments.