1. Gross Income John V. Balanquit

2. Objectives After the presentation, students should be able to: Describe and distinguish the different sources of gross income Illustrate how each item of gross income are treated in terms of taxation

3. Items of Gross Income Compensation – Those received by a person from another entity by virtue of an employee-employer relationship

4. Items of Gross Income Business Income – Those received by a person from trade either through the sale of goods or services

5. Items of Gross Income Gains from dealings in Properties – Those received by a person from the sale of capital asset such as real properties or shares of stocks.

6. Items of Gross Income Interests – Those received by a person from deposits, loans and other indebtedness.

7. Items of Gross Income Rent – Those received by a person from other entities who borrows or uses the former’s property or right.

8. Items of Gross Income Royalties – Those received by a person from leasing intangible assets such as copyrights, patents, and trademarks.

9. Items of Gross Income Dividends – Those received by a person from a corporation as his share in income by virtue of him being a shareholder.

10. Items of Gross Income Annuities – Those received by a person from insurance or other similar contract.

11. Items of Gross Income Prizes and Winnings – Those received by a person from contests whether commercial or non-commercial.

12. Items of Gross Income Pensions – Those received by a person from a retirement contract.

13. Items of Gross Income Others – Those received by a person from: Gambling and other illegal activities Damages claimed Debt forgiven Recovered bad debts Taxes refunded Informer’s Reward

14. Exclusions from Gross Income Life Insurance Gifts, Bequests, and Devises Compensation for Injuries Income exempt under treaty Retirement Benefits Other Miscellaneous Income

15. End of Lecture. Thank You!