### Question
How does the law define adjusted ordinary gross income?


### Answer
Under *26 U.S.C. § 543*, **adjusted ordinary gross income** is defined as:

> the ordinary gross income adjusted as follows:


#### (A) Rents


From the gross income from rents (as defined in the second sentence of paragraph (3) of this subsection) subtract the amount allowable as deductions for—


(i) exhaustion, wear and tear, obsolescence, and amortization of property other than tangible personal property which is not customarily retained by any one lessee for more than three years,


(ii) property taxes,


(iii) interest, and


(iv) rent,


  

to the extent allocable, under regulations prescribed by the Secretary, to such gross income from rents

#### 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**

