frezik , 1 month ago

Right. Someone with a networth of many millions may only have a yearly income of $100k. Sometimes far less. Different tax systems can also have different definitions of income. Is inheritance income? Are growth stocks that you haven’t cashed in yet income? Are stock dividends income? You can answer yes or no to any of these, but however you answer, you can still structure the tax system around those answers to come to an equitable arrangement.