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Net income is defined in the tax laws to mean net income as calculated for tax purposes. Income is not defined. To apply section 97 it is necessary to know what the income of the trust is and what a beneficiaryâs share of that income is.
Definition 1. Also known as earnings or profit, net income is what it''s really all about: making money. Thus, net income is probably the most closely watched item in a company''s financial reports. Unfortunately, net income is subject to a good many judgments by both corporate managers and accountants, as well as various charges that exist largely on paper.