Any form of income realized, whether in money, property, or services may be included in gross income. Gross income does not include an item that does not increase the wealth of the recipient in some way.
All income is taxable unless excluded by statute.
The form of income other than cash is still income. That is, if the asset is sold, a tax is usually due. Some transactions realize income in the accounting sense, but it might not be recognized for income tax purposes. Both A and B are determined when the taxpayer s initial return is filed. IRS must approve any change in the accounting period or method.