
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC61]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
               Subchapter B--Computation of Taxable Income
 
   PART I--DEFINITION OF GROSS INCOME, ADJUSTED GROSS INCOME, TAXABLE 
                              INCOME, ETC.
 
Sec. 61. Gross income defined


(a) General definition

    Except as otherwise provided in this subtitle, gross income means 
all income from whatever source derived, including (but not limited to) 
the following items:
        (1) Compensation for services, including fees, commissions, 
    fringe benefits, and similar items;
        (2) Gross income derived from business;
        (3) Gains derived from dealings in property;
        (4) Interest;
        (5) Rents;
        (6) Royalties;
        (7) Dividends;
        (8) Alimony and separate maintenance payments;
        (9) Annuities;
        (10) Income from life insurance and endowment contracts;
        (11) Pensions;
        (12) Income from discharge of indebtedness;
        (13) Distributive share of partnership gross income;
        (14) Income in respect of a decedent; and
        (15) Income from an interest in an estate or trust.

(b) Cross references

            For items specifically included in gross income, see part II 
        (sec. 71 and following). For items specifically excluded from 
        gross income, see part III (sec. 101 and following).

(Aug. 16, 1954, ch. 736, 68A Stat. 17; Pub. L. 98-369, div. A, title V, 
Sec. 531(c), July 18, 1984, 98 Stat. 884.)


                               Amendments

    1984--Subsec. (a)(1). Pub. L. 98-369 inserted reference to fringe 
benefits.


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-369 effective Jan. 1, 1985, see section 
531(h) of Pub. L. 98-369, set out as an Effective Date note under 
section 132 of this title.


                   Termination Date of 1978 Amendment

    Pub. L. 95-615, Sec. 210(a), Nov. 8, 1978, 92 Stat. 3109, provided 
that: ``Title I of this Act [probably means sections 1 to 8 of Pub. L. 
95-615, see Short Title of 1978 Amendment note under section 1 of this 
title] (other than sections 4 and 5 thereof) [amending section 167 of 
this title, enacting provisions set out as notes under this section and 
sections 61 and 62 of this title, and amending provisions set out as 
notes under sections 117, 167, and 382 of this title] shall cease to 
have effect on the day after the date of the enactment of this Act [Nov. 
8, 1978].''


                               Regulations

    Pub. L. 95-427, Sec. 1, Oct. 7, 1978, 92 Stat. 996, as amended by 
Pub. L. 96-167, Sec. 1, Dec. 29, 1979, 93 Stat. 1275; Pub. L. 97-34, 
title VIII, Sec. 801, Aug. 13, 1981, 95 Stat. 349; Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
    ``(a) In General.--No fringe benefit regulation shall be issued--
        ``(1) in final form on or after May 1, 1978, and on or before 
    December 31, 1983, or
        ``(2) in proposed or final form on or after May 1, 1978, if such 
    regulation has an effective date on or before December 31, 1983.
    ``(b) Definition of Fringe Benefit Regulation.--For purposes of 
subsection (a), the term `fringe benefit regulation' means a regulation 
providing for the inclusion of any fringe benefit in gross income by 
reason of section 61 of the Internal Revenue Code of 1986 [formerly 
I.R.C. 1954].''
    Pub. L. 95-615, Sec. 3, Nov. 8, 1978, 92 Stat. 3097, as amended by 
Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that no 
regulations be issued in final form on or after Oct. 1, 1977, and before 
July 1, 1978, providing for inclusion of any fringe benefit in gross 
income by reason of section 61 of the Internal Revenue Code of 1986 
[formerly I.R.C. 1954], ceased to have effect on the day after Nov. 8, 
1978, pursuant to section 210(a) of that Act.


       No Gain Recognized From Net Gifts Made Before March 4, 1981

    Section 1026 of Pub. L. 98-369, as amended by Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
    ``(a) In General.--In the case of any transfer of property subject 
to gift tax made before March 4, 1981, for purposes of subtitle A of the 
Internal Revenue Code of 1986 [formerly I.R.C. 1954, 26 U.S.C. 1 et 
seq.], gross income of the donor shall not include any amount 
attributable to the donee's payment of (or agreement to pay) any gift 
tax imposed with respect to such gift.
    ``(b) Gift Tax Defined.--For purposes of subsection (a), the term 
`gift tax' means--
        ``(1) the tax imposed by chapter 12 of such Code [26 U.S.C. 2501 
    et seq.], and
        ``(2) any tax imposed by a State (or the District of Columbia) 
    on transfers by gifts.
    ``(c) Statute of Limitations.--If refund or credit of any 
overpayment of tax resulting from subsection (a) is prevented on the 
date of the enactment of this Act [July 18, 1984] (or at any time within 
1 year after such date) by the operation of any law or rule of law 
(including res judicata), refund or credit of such overpayment (to the 
extent attributable to subsection (a)) may nevertheless be made or 
allowed if claim therefor is filed within 1 year after the date of the 
enactment of this Act.''


                Payment-in-Kind Tax Treatment Act of 1983

    Pub. L. 98-4, Mar. 11, 1983, 97 Stat. 7, as amended by Pub. L. 98-
369, div. A, title X, Sec. 1061(a), July 18, 1984, 98 Stat. 1046; Pub. 
L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 100-647, title 
VI, Sec. 6252(a)(1), Nov. 10, 1988, 102 Stat. 3752, provided that:
``SECTION 1. SHORT TITLE.
    ``This Act may be cited as the `Payment-in-Kind Tax Treatment Act of 
1983'.
``SEC. 2. INCOME TAX TREATMENT OF AGRICULTURAL COMMODITIES RECEIVED 
        UNDER A 1983 PAYMENT-IN-KIND PROGRAM.
    ``(a) Income Tax Deferral, Etc.--Except as otherwise provided in 
this Act, for purposes of the Internal Revenue Code of 1986 [formerly 
I.R.C. 1954]--
        ``(1) a qualified taxpayer shall not be treated as having 
    realized income when he receives a commodity under a 1983 payment-
    in-kind program,
        ``(2) such commodity shall be treated as if it were produced by 
    such taxpayer, and
        ``(3) the unadjusted basis of such commodity in the hands of 
    such taxpayer shall be zero.
    ``(b) Effective Date.--This section shall apply to taxable years 
ending after December 31, 1982, but only with respect to commodities 
received for the 1983 crop year.
``SEC. 3. LAND DIVERTED UNDER 1983 PAYMENT-IN-KIND PROGRAM TREATED AS 
        USED IN FARMING BUSINESS, ETC.
    ``(a) General Rule.--For purposes of the provisions specified in 
subsection (b), in the case of any land diverted from the production of 
an agricultural commodity under a 1983 payment-in-kind program--
        ``(1) such land shall be treated as used during the 1983 crop 
    year by the qualified taxpayer in the active conduct of the trade or 
    business of farming, and
        ``(2) any qualified taxpayer who materially participates in the 
    diversion and devotion to conservation uses required under a 1983 
    payment-in-kind program shall be treated as materially participating 
    in the operation of such land during such crop year.
    ``(b) Provisions to Which Subsection (a) Applies.--The provisions 
specified in this subsection are--
        ``(1) section 2032A of the Internal Revenue Code of 1986 
    (relating to valuation of certain farm, etc., real property),
        ``(2) section 6166 of such Code (relating to extension of time 
    for payment of estate tax where estate consists largely of interest 
    in closely held business),
        ``(3) chapter 2 of such Code (relating to tax on self-employment 
    income), and
        ``(4) title II of the Social Security Act [42 U.S.C. 401 et 
    seq.] (relating to Federal old-age, survivors, and disability 
    insurance benefits).
``SEC. 4. ANTIABUSE RULES.
    ``(a) General Rule.--In the case of any person, sections 2 and 3 of 
this Act shall not apply with respect to any land acquired by such 
person after February 23, 1983, unless such land was acquired in a 
qualified acquisition.
    ``(b) Qualified Acquisition.--For purposes of this section, the term 
`qualified acquisition' means any acquisition--
        ``(1) by reason of the death of a qualified transferor,
        ``(2) by reason of a gift from a qualified transferor, or
        ``(3) from a qualified transferor who is a member of the family 
    of the person acquiring the land.
    ``(c) Definitions and Special Rules.--For purposes of this section--
        ``(1) Qualified transferor.--The term `qualified transferor' 
    means any person--
            ``(A) who held the land on February 23, 1983, or
            ``(B) who acquired the land after February 23, 1983, in a 
        qualified acquisition.
        ``(2) Member of family.--The term `member of the family' has the 
    meaning given such term by section 2032A(e)(2) of the Internal 
    Revenue Code of 1986.
        ``(3) Mere change in form of business.--Subsection (a) shall not 
    apply to any change in ownership by reason of a mere change in the 
    form of conducting the trade or business so long as the land is 
    retained in such trade or business and the person holding the land 
    before such change retains a direct or indirect 80-percent interest 
    in such land.
        ``(4) Treatment of certain acquisitions of right to the crop.--
    The acquisition of a direct or indirect interest in 80 percent or 
    more of the crop from any land shall be treated as an acquisition of 
    such land.
``SEC. 5. DEFINITIONS AND SPECIAL RULES.
    ``(a) General Rule.--For purposes of this Act--
        ``(1) 1983 payment-in-kind program.--The term `1983 payment-in-
    kind program' means any program for the 1983 crop year--
            ``(A) under which the Secretary of Agriculture (or his 
        delegate) makes payments in kind of any agricultural commodity 
        to any person in return for--
                ``(i) the diversion of farm acreage from the production 
            of an agricultural commodity, and
                ``(ii) the devotion of such acreage to conservation 
            uses, and
            ``(B) which the Secretary of Agriculture certifies to the 
        Secretary of the Treasury as being described in subparagraph 
        (A).
        ``(2) Crop year.--The term `1983 crop year' means the crop year 
    for any crop the planting or harvesting period for which occurs 
    during 1983. The term `1984 crop year' means the crop year for wheat 
    the planting and harvesting period for which occurs during 1984.
        ``(3) Qualified taxpayer.--The term `qualified taxpayer' means 
    any producer of agricultural commodities (within the meaning of the 
    1983 payment-in-kind programs) who receives any agricultural 
    commodity in return for meeting the requirements of clauses (i) and 
    (ii) of paragraph (1)(A).
        ``(4) Receipt includes right to receive, etc.--A right to 
    receive (or other constructive receipt of) a commodity shall be 
    treated the same as actual receipt of such commodity.
        ``(5) Amounts received by the taxpayer as reimbursement for 
    storage.--A qualified taxpayer reporting on the cash receipts and 
    disbursements method of accounting shall not be treated as being 
    entitled to receive any amount as reimbursement for storage of 
    commodities received under a 1983 payment-in-kind program until such 
    amount is actually received by the taxpayer.
        ``(6) Commodity credit loans treated separately.--Subsection (a) 
    of section 2 shall apply to the receipt of any commodity under a 
    1983 payment-in-kind program separately from, and without taking 
    into account, any related transaction or series of transactions 
    involving the satisfaction of loans from the Commodity Credit 
    Corporation.
    ``(b) Extension to Wheat Planted and Harvested in 1984.--In the case 
of wheat--
        ``(1) any reference in this Act to the 1983 crop year shall 
    include a reference to the 1984 crop year, and
        ``(2) any reference to the 1983 payment-in-kind program shall 
    include a reference to any program for the 1984 year for wheat which 
    meets the requirements of subparagraphs (A) and (B) of subsection 
    (a)(1).
    ``(c) Regulations.--The Secretary of the Treasury or his delegate 
(after consultation with the Secretary of Agriculture) shall prescribe 
such regulations as may be necessary to carry out the purposes of this 
Act, including (but not limited to) such regulations as may be necessary 
to carry out the purposes of this Act where the commodity is received by 
a cooperative on behalf of the qualified taxpayer.''
    [Section 1061(b) of Pub. L. 98-369 provided that: ``The amendments 
made by this section [amending Pub. L. 98-4 set out above] shall apply 
with respect to commodities received for the 1984 crop year (as defined 
in section 5(a)(2) of the Payment-in-Kind Tax Treatment Act of 1983 
[Pub. L. 98-4, set out above] as amended by subsection (a)).'']


                  Cancellation of Certain Student Loans

    Pub. L. 94-455, title XXI, Sec. 2117, Oct. 4, 1976, 90 Stat. 1911, 
as amended by Pub. L. 95-600, title I, Sec. 162, Nov. 6, 1978, 92 Stat. 
2810; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided 
that no amount be included in gross income of an individual for purposes 
of 26 U.S.C. 61 by reason of the discharge made before Jan. 1, 1983 of 
the indebtedness of the individual under a student loan if the discharge 
was pursuant to a provision of the loan under which the indebtedness of 
the individual would be discharged if the individual worked for a 
certain period of time in certain geographical areas or for certain 
classes of employers.


    Regulations Relating to Tax Treatment of Certain Prepublication 
                       Expenditures of Publishers

    Pub. L. 94-455, title XXI, Sec. 2119, Oct. 4, 1976, 90 Stat. 1912, 
as amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, 
provided that:
    ``(a) General Rule.--With respect to taxable years beginning on or 
before the date on which regulations dealing with prepublication 
expenditures are issued after the date of the enactment of this Act 
[Oct. 4, 1976], the application of sections 61 (as it relates to cost of 
goods sold), 162, 174, 263, and 471 of the Internal Revenue Code of 1986 
[formerly I.R.C. 1954] to any prepublication expenditure shall be 
administered--
        ``(1) without regard to Revenue Ruling 73-395, and
        ``(2) in the manner in which such sections were applied 
    consistently by the taxpayer to such expenditures before the date of 
    the issuance of such revenue ruling.
    ``(b) Regulations To Be Prospective Only.--Any regulations issued 
after the date of the enactment of this Act [Oct. 4, 1976] which deal 
with the application of sections 61 (as it relates to cost of goods 
sold), 162, 174, 263, and 471 of the Internal Revenue Code of 1986 to 
prepublication expenditures shall apply only with respect to taxable 
years beginning after the date on which such regulations are issued.
    ``(c) Prepublication Expenditures Defined.--For purposes of this 
section, the term `prepublication expenditures' means expenditures paid 
or incurred by the taxpayer (in connection with his trade or business of 
publishing) for the writing, editing, compiling, illustrating, 
designing, or other development or improvement of a book, teaching aid, 
or similar product.''


 Reimbursement of Moving Expenses of Employees of Certain Corporations 
  Excluded From Gross Income; Claim for Refund or Credit; Limitations; 
                                Interest

    Pub. L. 86-780, Sec. 5, Sept. 14, 1960, 74 Stat. 1013, provided for 
the exclusion from gross income of any amount received after Dec. 31, 
1949, and before Oct. 1, 1955, by employees of certain corporations as 
reimbursement for moving expenses, and the refund or credit of any 
overpayments.

                  Section Referred to in Other Sections

    This section is referred to in sections 208A, 305, 351, 354, 355, 
356, 408, 671, 707, 6103 of this title.
