Exclusion from Gross Income Clause Samples

The Exclusion from Gross Income clause defines specific types of income that are not subject to taxation and therefore are not included when calculating an individual's or entity's gross income for tax purposes. In practice, this clause may apply to items such as certain gifts, inheritances, or life insurance proceeds, which are explicitly excluded by law from taxable income. By clearly identifying what is exempt from gross income, this clause helps taxpayers avoid over-reporting income and ensures compliance with tax regulations, ultimately reducing the risk of unnecessary tax liability.
Exclusion from Gross Income. For federal tax purposes, the Employee may exclude from gross income for any taxable year the Employer contributions that are made to the Account to the extent such contributions do not exceed the Employee's exclusion allowance under Section 403(b)(2) of the Code for the taxable year (and all other applicable limitations, including those set forth in Sections 3.4 and 3.7).
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Exclusion from Gross Income. For federal tax purposes, the Employee may exclude from gross income for any taxable year, the Employer contributions that are made to the Account, to the extent such contributions do not exceed the Employee's exclusion allowance under Section 403(b)(2) of the Code for the taxable year. 3.6 EXCESS CONTRIBUTIONS: Any excess contributions (as defined in Section 4973(c) of the Code) that are made to the Account shall be subject to the 6 percent excise tax of Section 4973(a) of the Code. Neither the Custodian nor the Company shall have any duty or responsibility for determining whether any contributions to the Account are excludable from the Employee's gross income, or for assuring that any contributions to the Account do not constitute excess contributions for purposes of Code Section 4973. If, during any taxable year the Employer contributes an amount which is an "excessive contribution," such excess contribution and any income attributable thereto shall, upon the written request of the Employee to the Custodian specifying the amount of such excess contribution and income, be paid to the Employee by the Custodian, or, at the Employee's election, be applied toward a contribution for the next year.
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Exclusion from Gross Income. The Company hereby represents that it has taken and caused to be taken, and covenants that it will take and cause to be taken, all actions that may be required of it, alone or in conjunction with the Issuer, for the interest on the Series 1997 Bonds to be and remain excluded from gross income for federal income tax purposes, and represents that it has not taken or permitted to be taken on its behalf, and covenants that it will not take or permit to be taken on its behalf, any actions that would adversely affect such exclusion under the provisions of the Code.
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Related to Exclusion from Gross Income

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