About This Chapter
Types of Taxable Income - Chapter Summary
In this informative chapter, you'll review different kinds of taxable income. Our lessons cover definitions for gross and net income, as well as the tax code associated with non-cash benefits and examples of imputed income. Additional topics include the treatment of loans as income and income tax issues related to personal investments. You're welcome to review these lessons as many times as you need in order to feel confident you've mastered the topics. The quiz you'll find at the end of each lesson makes a great test prep tool and helps to ensure you've understood what you've learned. This chapter is designed to help you:
- Outline the different types of income
- Detail the model and formula used for residual income
- Explain the calculations used for taxable income
- Describe how illegal income is taxed in the U.S.
- Calculate estate and gift tax
- Discuss the claim of right doctrine and the recovery of capital doctrine
- Identify how personal injury settlements are taxed
- Define transfer of property subject to debt
- Differentiate between the tax municipal bond interest and stock dividends
1. What is Income? - Definition, Types & Examples
Read this lesson to learn about a different way to think about income. You'll also learn about some interesting types of income that the government looks at for taxation purposes.
2. Gross & Net Income: Definition & Examples
On any income statement, you will see two different numbers reported as income - one called 'gross' and one called 'net.' In this lesson, we'll explain the difference between these two numbers.
3. What Is Residual Income? - Definition, Model & Formula
Residual income is a highly attractive way to earn money. This lesson discusses two definitions of residual income and gives many examples of how residual income is earned.
4. What is Taxable Income? - Definition & Calculations
Even if you pay someone to do your taxes, it is important to understand the basics of income taxes. In this lesson, we will define taxable income and discuss the basic steps of how you calculate taxable income.
5. Taxation of Illegal Income in the U.S.
This lesson will cover the US Tax law in regards to illegal income, and expenses incurred in the course of illegal activity. We will define the requirements for claiming money gained unlawfully.
6. Non-Cash Benefits: Definition, Tax Code & Examples
Many employers provide benefits to attract and retain employees, as well as to make it easier for employees to do their jobs. In this lesson, we'll look at non-cash benefits and their tax implications.
7. Imputed Income & Realization: Definition & Examples
In this lesson, learn about imputed income, their types, associated laws, and taxation requirements. Examples will be included to see how this income can apply to the average employee.
8. Calculating Gift & Estate Tax: How-To & Example
This lesson focuses on the definitions of estate and gift taxes and lifetime limits. The lesson also includes examples of how each applies to individuals subject to gift and estate tax rules.
9. How the Tax Code Treats Personal Injury Settlements
In this lesson, we will discuss when a personal injury settlement is exempt from taxes and under what circumstances a settlement is fully or partially taxable.
10. The Treatment of Loans as Income
Did you know that sometimes a loan can become income? That's right, money that you borrowed and technically have to pay back may become income and taxable. Learn how in this lesson.
11. Municipal Bond Interest vs. Stock Dividends in Taxes
In this lesson we will review how municipal bond interest and stock dividends are taxed and identify some of the circumstances where the tax rate changes based on factors such as residency or length of ownership.
12. Sale of a Principal Residence as Income
In this lesson, we will look at the rules for when and the profits of selling a personal residence are taxed, as well as the different tax rates that apply depending on the circumstances of the sale.
13. Income Tax Issues in Personal Investments
In this lesson, we'll define income tax. You'll learn about three types of investments: stocks, bonds and real estate. We'll also discuss the various types of income received from these investments and their tax treatment.
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Other chapters within the Accounting 307: Federal Income Taxes course