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According to the U.S.Supreme Court, income may be defined as the gain derived from capital, from labor, or from both combined provided it is understood to include profit gained through sale or conversion of capital assets.()

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The first step in tax research is to locate the relevant legal authorities.()

Patrick ran up a large credit card debt.Since the bank wanted to keep Patrick’s account they forgave $5,000 of his balance.Patrick was solvent before and after the forgiveness.He has to include the $5,000 in his income.()

Under the pay-as-you-go concept, the tax base used to compute the taxpayer’s income tax liability is a net income number.()

An individual should be indifferent whether an expense is deducted for or deducted from adjusted gross income.()

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