The Code defines gross income as “all income from whatever source derived” unless otherwise provided. But what are some of the incomes excluded from such a broad definition? Section 104 provides that compensation for personal injuries and sickness, among other things, is excluded from gross income.

In this episode, Professor Heather Field demonstrates the art of statutory interpretation by dissecting a short but not-so-simple part of section 104. Professor Field is the Stephen A. Lind Professor of Law and Co-Director of the Center on Tax Law at the University of California Law San Francisco (formerly UC Hastings).

Tax Class is hosted by ⁠⁠⁠⁠Ben Leff⁠⁠⁠⁠ and produced by Tony Xu. The theme music is by Doo Dah Music. None of the information presented in this podcast constitutes legal advice. Consult an attorney or a tax professional for guidance.

Subscribe to the show for more insights into the federal income tax. Send any comments or questions to ⁠⁠⁠⁠TaxClassPodcast@gmail.com⁠⁠⁠⁠.

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Materials mentioned in this episode:

• IRC § 104
• Pre-class exercise

Computing gross income is the first step in figuring out income tax. The broad language used in section 61 of the Internal Revenue Code is not helpful in answering what constitutes “gross income.”

While payments for wages or salaries are almost always counted as gross income, not all money received is income (e.g., borrowing money is not income). Vice versa is also true—you can have income without receiving any money (e.g., cancellation of debt).

In this episode, Prof. Jennifer Bird-Pollan explains the distinction between getting paid and having an income. Prof. Brid-Pollan is the Alan S. Schenk Chair in Taxation at Wayne State University’s law school.

Tax Class is hosted by ⁠⁠⁠⁠Ben Leff⁠⁠⁠⁠ and produced by Tony Xu. The theme music is by Doo Dah Music. None of the information presented in this podcast constitutes legal advice. Consult an attorney or a tax professional for guidance.

Subscribe to the show for more insights into the federal income tax. Send any comments or questions to ⁠⁠⁠⁠TaxClassPodcast@gmail.com⁠⁠⁠⁠.

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Materials mentioned in this episode

Internal Revenue Code: §§ 61(a),108(f), 165(a), 165(c)(2), 166.

Cases:

• Commissioner v. Glenshaw Glass Co., 348 U.S. 426 (1955);
• United States v. Kirby Lumber Co., 284 U.S. 1 (1931);
• Eisner v. Macomber, 252 U.S. 189 (1920).

The first class of the semester is not just about the syllabus. Professor Miranda Perry Fleischer uses her first class to lay the foundation for the rest of the semester, as well as to convince any hesitant students that federal income tax is not just about numbers. In this episode, Professor Fleischer explains how she uses a fictitious bad tax law to illustrate some of the big concepts in tax policy.

Professor Fleischer is the Associate Dean of Faculty and Richard and Kaye Woltman Professor in Finance at the University of San Diego School of Law.

Tax Class is hosted by ⁠Ben Leff⁠ and produced by Tony Xu. The theme music is by Doo Dah Music. None of the information presented in this podcast constitutes legal advice. Consult an attorney or a tax professional for guidance.

Subscribe to the show for more insights into the federal income tax. Send any comments or questions to ⁠TaxClassPodcast@gmail.com⁠.