Gross Income

The entire amount of income before any deductions are taken off is called 'gross income'. For tax reporting purposes, apart from a few exceptions, the gross income is detailed in the report and then deductions entered separately to arrive at the 'net income' or ' taxable profit' in some cases (also see 'Net Income' and 'Adjusted Net Income').

Gross income should not be confused with 'receipt' which can occur when commissions and fees are taken from the gross income, as can often be the case with property letting when using an agent. Accordingly, Landlords should ensure that they report the amount received by the agent concerning the letting and not the amount paid onwards to them.