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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.
Internal Revenue Code section 61. Section 61 of the Internal Revenue Code (IRC 61, 26 U.S.C. Â§ 61) defines gross income, the starting point for determining which items of income are taxable for federal income tax purposes in the United States. Section 61 states that except as otherwise provided in this subtitle gross income means all income from whatever source derived.