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GROSS INCOME - Coggle Diagram

- - - - Has the amount accrued to the taxpayer despite money still being owed?
        If accrued, should it be included at face value or present discounted value?
        
        Accrual means the taxpayer has become entitled to the amount on the date of sale.
        Always include an amount at face value.
  - - - Did the proceeds from the race accrue to the taxpayer or the charities?
        
        The proceeds were received as a result of a scheme of profit making and were distributed in terms of a moral obligation. Therefore the association was still the principle, not acting as the agent of the charities.
        
        An amount accrues to a taxpayer if the taxpayer has no legal obligation to pay it over (only moral obligation) to another person.
  - - - Is “amount” per the gross income definition confined to receipts of “money”?
        
        Amount includes every other form of property, including debts and rights of action
        
        Even if an amount is payable in the future, the amount accrues to the taxpayer when the taxpayer becomes entitled to the amount. Once delivery has taken place, the seller becomes entitled to the full sale price
- - - - Are the proceeds from the sale of the sheep received by the widow?
        
        The original number of sheep (or cash equivalent) had to be returned to the owners (children) at the end of the period of use. The number of sheep at the end of the period was less than the original amount. She did not increase the number of sheep during the period. The children were entitled to the full amount.
        
        The amount is only include in gross income by a taxpayer only if it is received by him on his own behalf, for his own benefit
  - - - Is the money (deposit) actually received by the company?
        
        Even though the amounts received were immediately repayable (per the contract), they were not loans but receipts as the taxpayer intended retaining the receipts for their own benefit.
        
        A bilateral receipt (the other party willingly gives you the money) that is used for your own intention means it has been received by you. You intended to use it for your own benefit.
  - - - Is the proceeds relating to the tin still received by the taxpayer?
        
        The amount paid for the tin was received by the company and is part of the normal trading income. The customers could choose to return the tins or not.
        
        Generally deposits are still received and form part of gross income. A deposit is only treated as not being received if the money is kept separately in a trust account, for the benefit of the customer.
- - - - The benefit will pass in the future; can an amount be determined now (upon completion of the improvements) in order to tax the lessor?
        
        The benefit will only pass in 50 years; therefore the lessor can’t be taxed now as there is no ascertainable monetary value.