I am not a Tax Lawyer, Nor do I play Dan Evans on the internet.
I am not a Certified Public Accountant, Nor do I play Paul Thomas on the internet.
I am not an Enrolled Agent, Nor do I play Richard Macdonald on the internet.
DO NOT TAKE MY WORD FOR ANYTHING ON THIS PAGE.
Go look it up for yourself.
The reader should note that a definition is not a command to action, nor a duty imposed. It is simply a description of what the term, or the words of a term, mean. It may describe an outline of what is the general format of an equation, of which the values will be introduced by the WRITTEN words of law found elsewhere.
In the case of 26 USC section 63, we have been given the general format of an equation:
Taxable Income = Gross Income - Deductions Allowed
Or, showing the same equation in another form:
TI = GI - DA
which is no different than:
Z = X - YIf we don't know what DA or Y is, we can not calculate nor determine TI or Z. If we do not know what GI or X is, we can not calculate nor determine TI or Z.
Taxable income means gross income minus the deductions allowed.
This is a definition. This is NOT "The rules for determining taxable income". You will see the "The rules for determining taxable income" later in this chapter.
Taxable income means gross income minus the deductions allowed. This is no more specific than an algebra formula:
If one does not have gross income, then one can not have taxable income.
If one does not have taxable income, then one can not have an income tax imposed.
The question now shifts and becomes, Do I have gross income? In order to find out if I have gross income, I have to find out what gross income is. In order to find out what gross income is, I have to look at 26 USC section 61.
Whether married or unmarried, IRC section 63 does not differentiate between three internationally renown burger flippers.
IRC section 63 also does not differentiate between gross income from flipping burgers in Canada, China, or the United States.