Gross Receipts

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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.


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