TAXABLE
Excess of premiums of life insurance
Gain on sale of life insurance by the
insured
Interest income
Recovery of lost profits
-crop and livestock insurance proceeds
-guarantee payments
-indemnity for patent infringement
The portion of money received in trust to
be remitted to another person to be kept
Return of capital
Rendering services for a consideration
Winnings from gambling
Offset of debt in consideration for sale of
goods or services
Deposit of income to bank account
Matured interest coupons on coupon
bonds not yet encashed
Increase in capital of partner from profit
of partnership
NOT TAXABLE
Life insurance proceeds to heirs
Indemnity for moral damages
-defamation
-alienation of affection
-breach of promise to marry
Receipt of loan
Discovery of lost property
Receipt of money in trust to be remitted
to other person
Exchanges between home income and
branch
Unrealized gains/ holding gains (not
realized until sold)
Appreciation or increase in value of
properties or decrease in value of
obligations in absence of exchanges
8 exemptions under law