Gross Receipts

Gross Receipts may have one of the following meanings, depending the context of the term:

1. The total sales of a business in a year, before deductions for returns and allowances or trade discounts, constitute the gross receipts.

2. For purposes of the built-in gain tax, the gross receipts of an S corporation include revenue from inventory sales, sales of fixed assets, and various other items. Also, a foreign tax must satisfy the gross receipts test in order to qualify for a foreign tax credit.

Description and Definition of Gross Receipts

Total business receipts for your business during the year before deducting adjustments for returns and allowances and cost of goods sold.

Resources

See Also

Further Reading

• Gross Receipts in the West's Tax Law Dictionary
• Gross Receipts in “A Dictionary of Taxation”