Ordinary income

Published: Sat, 01/30/16

This is an email that I just received, which obviously is a good connection. See my comments after.

THIS IS NOT THE SUBJECT OF TODAY’S CALL WITH DAVID

“Hi, Chappy!

In the latest default judgment I filed I had stated, among many other things (including the §83 argument), that before I could determine what the hybrid terms “gross income,” “taxable income,” “adjusted gross income,” etc. meant, I had to first know what regular, ordinary, everyday “income” is. And since the term is not defined in the Code without being coupled with a qualifier/adjective, the hybrid term that comes closest to what I was looking for is “ordinary income”:

IRC §64. Ordinary income defined – “For purposes of this subtitle, the term "ordinary income" includes any GAIN from the sale or exchange of property which is neither a capital asset nor property described in section 1231(b). Any GAIN from the sale or exchange of property which is treated or considered, under other provisions of this subtitle, as "ordinary income" shall be treated as GAIN from the sale or exchange of property which is neither a capital asset nor property described in section 1231(b). (emphasis added)”

The bottom line to all of this is “income” is defined as “the excess of the fair market value of such property … over … the amount (if any) paid…

WHICH IS GAIN OR PROFIT!!!!

Definition to Gain and Profit if Black’s Law Dictionary

GAIN. Profits; winnings; 1ncrement of value. Gray v. Darlington, 15 Wall. 65, 21 L.Ed. 45; Thorn v. De Breteuil, 86 App.Div. 405, 83 N.Y.S. 849. Difference between receipts and expenditures; pecuniary gain. Stanton v. Zercher, 101 Wash. 383, 172 P. 559.562; Rooney v. City of Omaha, 105 Neb. 447, 181 N.W. 143, 145. Difference between cost and sale price. Weil v. State, 237 Ala. 293, 186 So. 467, 469.

PROFIT. The advance in the price of goods sold beyond the cost of purchase. The gain made by the sale of produce or manufactures, after deducting the value of the labor, materials, rents, and all expenses, together with the interest of the capital employed. Webster. Lapham v. Tax Com'r, 244 Mass. 40, 138 N.E. 708, 710; McCready v. Bullis, 59 Cal.App. 286, 210 P. 638, 640. Gain realized from business or investment over and above expenditures. Citizens Nat. Bank v. Corl, 225 N.C. 96, 33 S.E.2d613, 616. Fairchild v. Gray, 242 N.Y.S. 192, 196, 136 Misc. 704. An excess of the value of returns over the value of advances. The same as net profits. Crawford v. Surety Inv. Co., 91 Kan. 748, 139 P. 481, 484.

(a)General definition Except as otherwise provided in this subtitle, gross income means all income from whatever source derived, including (but not limited to) the following items:

Chapman’s Law: (a)General definition Except as otherwise provided in this subtitle, gross PROFIT AND GAIN means all PROFIT AND GAIN from whatever source derived, including (but not limited to) the following items:…

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