|Gross Income: Inclusions and Exclusions |
When you have completed this chapter, you should understand the following learning
Describe when and how to record income for tax purposes.
Apply the cash method of accounting to income taxes.
Explain the taxability of components of gross income, including interest, dividends,
tax refunds, and social security benefits.
Apply the rules concerning items excluded from gross income.
Apply the rules associated with tax accounting for savings bond interest used for
education expenses, below-market interest loans, gift loans, and original issue
discount debt (appendix).