All ▸ Bar 2024 ▸ COMMERCIAL AND TAXATION LAWS ▸ XIII. TAXATION LAW (R.A. No. 8424, as amended by R.A. No. 10963, R.A. No. 11534) ▸ G. Income Taxation ▸ 4. Gross Income ▸ a. Definition, Concept of Income from Whatever Source Derived - Section 32

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Gross Income: Definition, Concept of Income from Whatever Source Derived - Section 32

Mr. Reyes is a self-employed graphic designer who operates his business from his home studio. He has several clients who pay him for his design services. During the taxable year, Mr. Reyes received the following payments:

Payment of P50,000 for designing a company logo for XYZ Corporation;
Payment of P30,000 for designing a website for ABC Corporation;
Payment of P20,000 as royalties for the use of his artwork in a television commercial;
Payment of P10,000 from a friend who commissioned him to paint a portrait;
Payment of P5,000 for winning an online design competition.

Based on the given information, determine the following:

What is Mr. Reyes' gross income for the taxable year?
Is there any specific income item that should be excluded from Mr. Reyes' gross income? If yes, explain and cite the applicable law.

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