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Continue Learning about Accounting

What is Colorado source income?

are mineral right royalties considered a colorado source income


Is depreciation an internal source of capital?

Depreciation is regarded as a source of capital because it is a noncash expense on the Income Statement. (see "Understanding Wall Street" 5th ed. by Jefffrey B. Little & Lucien Rhodes - pg 51.)


Why are gross income and adjusted gross income different?

Gross Income- The Internal Revenue Code defines gross income as "except as otherwise provided..., all income from whatever source derived." The "except as otherwise provided" refers to exclusions. Adjusted Gross Income (AGI)- is an important subtotal that serves as the basis for computing percentage limitations on certain itemized deductions, such as medical expenses, charitable contributions, and certain casualty losses.


What is the best definition of taxable income?

For Federal income tax purposes, taxable income is the portion of a taxpayer's gross income on which his regular income tax liability (before payments and credits) for the year is based. Income from any given source is taxable, unless the Code specifically says it isn't taxable. Calculation: Taxable income starts with gross income, which according to the US Internal Revenue Code, is all income from whatever source derived. Gross income is then reduced by certain adjustments allowed by the IRS (e.g. for student loan interest, alimony paid, and 10 or so other specific items) to get adjusted gross income. Adjusted gross income is then reduced by exemptions (both personal and for any dependents) and itemized deductions (or the standard deduction) to arrive at taxable income.


What is the main source of income in Angola?

agriculture