Can you explain the difference between capital and revenue items of expenditure and income?

The Internal Revenue Code lists a number of different gross income sources...?

• The Internal Revenue Code lists a number of different gross income sources. When a taxpayer receives something that is not one of the listed items, is it exempt from tax? Explain your answer. From the book: The Code lists the following different gross income sources (and implies that others exist): 1. Compensation for services, including salary, wages, fees, commissions, fringe benefits, etc. 2. Gross income from business 3. Gains from the disposal of property 4. Interest 5. Rents 6. Royalties 7. Dividends 8. Alimony and separate maintenance payments 9. Annuities 10. Income from life insurance proceeds 11. Pensions 12. Income from forgiven debt 13. Share of distributive partnership income and prorata share of S Corporation income 14. Income in respect of a decedent 15. Income from an interest in an estate or trust

• Answer:

  You are reading the code wrong. It's ALL taxable income unless explicitly exempt or excluded. So if it's not on the list it's "other income."