### Question
How is the term ordinary gross income defined?


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

> 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**

