gross income

Gross income

A person's total income prior to exclusions and deductions.

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gross income

1. For a business, its total revenues exclusive of any expenses.

2. For an individual, all income except as specifically exempted by the Internal Revenue Code. For example, an inheritance is specifically excluded from gross income.

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Gross Income

An individual or company's income before taxes and deductions. For individual income, it is calculated as the individual?s wages or salary, investment and asset appreciation, and the amount made from any other source of income. In a company, it is calculated as revenues minus expenses. An individual's gross income is important to determining eligibility for certain social programs, while a company's gross income is one measure among many of how well it uses its resources to produce a profit. See also: Adjusted gross income.

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gross income

The total revenue of a business or individual before deduction for expenses, allowances,depreciation,or other adjustments.

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Gross Income

What Does Gross Income Mean?

(1) An individual's total personal income before taking taxes or deductions into account. (2) A company's revenue minus cost of goods sold. Also called gross margin and gross profit.

Investopedia explains Gross Income

(1) Your gross income is how much you make before taxes. If someone asks you how much money you gross a month, this is the figure that you would give. (2) This is an important number when one is analyzing a company; it indicates how efficiently management uses labor and supplies in the production process. One must keep in mind that gross income varies significantly from industry to industry.

Related Terms:
• Cost of Goods Sold—COGS
• Income Statement
• Net Income—NI
• Operating Income
• Revenue

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Gross Income

Total worldwide income received in the form of money, property, or services that is subject to tax unless specifically exempt or excluded by law.