### Question
How does Income Taxes define gross profit percentage?


### Answer
Under *26 U.S.C. § 132*, **gross profit percentage** is defined as:

> the percent which—


(i) the excess of the aggregate sales price of property sold by the employer to customers over the aggregate cost of such property to the employer, is of


(ii) the aggregate sale price of such property

#### Citation:
  - *26 U.S.C. § 132*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART III-ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME**

