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


### Answer
The term **gross income** is defined in *26 U.S.C. § 6501* as the following:

> the total of the amounts received or accrued from the sale of goods or services (if such amounts are required to be shown on the return) prior to diminution by the cost of such sales or services

#### Citation:
  - *26 U.S.C. § 6501*
  - Heading: **Subtitle F-Procedure and Administration > CHAPTER 66-LIMITATIONS > Subchapter A-Limitations on Assessment and Collection**

