Are capital gains part of gross income to the IRS?

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Are capital gains part of gross income to the IRS?

I am wondering if capital gains are included in the definition of "gross income" or it is just money that you have earned through employment?

2007-04-01 04:52:16 · 3 answers · asked by copperline78 2 in Business & Finance ➔ Taxes ➔ United States

3 answers

Capital Gains and Losses
http://www.irs.gov/taxtopics/tc409.html

Gross income defined
http://www.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00000061----000-.html

2007-04-01 05:12:45 · answer #1 · answered by friendlyflyr 5 · 0⤊ 0⤋

Yes, gross income includes capital gains.

2007-04-01 04:55:13 · answer #2 · answered by Judy 7 · 0⤊ 0⤋

Yes, capital gains are part of your income but reported on a different form than your other income. And the tax rate will be different than for your other income.

2007-04-01 04:59:22 · answer #3 · answered by Anonymous · 1⤊ 0⤋