What is the difference between "gross proceeds" and "gross income"?

Answer 1

Gross proceeds is simply the total amount of money you received for selling something before taking any adjustments for selling expenses. For example, if you sold a house for $100,000 and had $7,000 in selling expenses such as commissions and closing costs your gross proceeds would be $100,000 and the net proceeds would be $93,000.

Gross income is your total income from all sources prior to adjustments such as retirement fund contributions, pre-tax deductions, etc.

Answer 2

Gross proceeds is for instance, you sell a block of xxx for one thousand dollars. If it cost you three hundred dollars to buy the materials to make the block of xxx and two hundred dollars for the labor to do so and one hundred dollars to rent the building to do so in then you would have six hundred dollars tied up in the block of xxx. You sold it for a gross proceeds amount of one thousand dollars, subtract your expenses attributed to it and wind up with a profit; or gross income of four hundred dollars.