Gross Receipts For Section 59a(e On K-1
Rules similar to the rules of subparagraphs (B), (C), and (D) of section 448(c)(3) shall apply in determining gross receipts for purposes of this section. Effective for base erosion payments (as defined in section 59A(d) of the Internal Revenue Code of. Great to see you in the community and thanks for reaching out! I was able to suppress the gross receipts for section 59A(e) by entering a -1 in screen 22Other Schedule K ItemsOther InformationGross receipts for section 59A(e) O.
The phrase, 'gross receipts,' is an accounting term often heard from accountants and financial managers. Its meaning pertains to a parameter of revenues that is often discussed when talking about the profitability of a business. Lack of understanding about this this term can make it difficult for you to comprehend discussions about revenues and receipts.
Definition
Gross means without deductions, so gross receipts refer to the total amount of considerations received in exchange for property or services sold, leased or rented during a given period before deducting costs or expenses. Except for a few exceptions, gross receipts of a business encompass all business activities that generate income.
Inclusions
Gross receipts include amounts received from both operating and non-operating business activities. Operating receipts result from performance of a company's core operations. Non-operating receipts are generated by activities that are not part of the company's core operations. Interest income, dividend income, real estate rents, commissions, royalties, sale of scrap, refund of tax and donations received are receipts that result from non-operating business activities.
Exclusions
Gross Receipts For 59a
Gross receipts present the value without deductions of operating and non-operating expenses. They do not include deductions that are part of adjustments to sales prices such as sales returns and allowances and sales discounts. Some payments received by a business are not considered in computing gross receipts such as withholding taxes collected from the employees, revenue from the sales of fixed assets, appreciation of property, loans and sales tax collected in behalf of the government.
Confusion
Gross receipts should not be confused with gross sales. Gross sales specifically pertain to sales income, but gross receipts include income from non-sales sources. Receipts should not be misinterpreted to mean paper receipts such as those issued by vendors as written proof of payment upon sale of merchandise.
References
About the Author
Raul Avenir has been writing for various websites since 2009, authoring numerous articles concentrated on business and technology. He is a technically inclined businessman experienced in construction and real estate development. Aside from being an accountant, Avenir is also a business consultant. He graduated with a degree of Bachelor of Science in business administration.
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