### Question
Can you define what ordinary gross income means?


### Answer
**Ordinary gross income** is defined as the following in *26 U.S.C. § 543*:

> the gross income determined by excluding—


(A) all gains from the sale or other disposition of capital assets, and


(B) all gains (other than those referred to in subparagraph (A)) from the sale or other disposition of property described in section 1231(b)

#### Citation:
  - *26 U.S.C. § 543*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter G-Corporations Used to Avoid Income Tax on Shareholders > PART II-PERSONAL HOLDING COMPANIES**

