35 Miss. Admin. Code Pt. III, Subpt. 1, Ch. 01 — Definitions

100 "Gross income" means all income from whatever source derived, unless excluded by law
and includes income realized in any form, whether in money, property or services. Gross
income includes compensation for personal and professional services, wages, fees, business
income, profits from sales, rentals and dealings in property, interest, dividends and gains,
profits and income derived from any source whatever, including income from
governmental agencies and subdivisions thereof, annuities, reacquired property, securities,
insurance premiums, reinsurance premiums, considerations for supplemental insurance
contracts, transactions of any business carried on within the state for gain or profit, income
from intangibles if such property has acquired a business, commercial or actual situs in this
state, a partner's distributive share of partnership gross income, income in respect of a
decedent, and income from an interest in an estate or trust unless exempt or otherwise
excluded, in whole or in part, from tax by law. Gross income, however, is not limited to the
items so enumerated. In the case of a taxpayer reporting net income under this act on a
basis of receipts and disbursements, there should be included in gross income only actual
and constructive receipts of income. Taxpayers reporting on the accrual basis must include
in gross income amounts received by them or accrued to them.
101 In a manufacturing, merchandising or mining business, "gross income" means the total
sales, less the cost of goods sold, plus any income from investments and from incidental or
outside operations or sources.
102 "Net income " means gross income less allowable business expenses. The business
deductions are in general, though not exclusively, expenditures, other than capital
expenditures, in connection with the production of income.
103 "Taxable income" with respect to individuals, estates and trusts, means total gross income
less allowable expenses incurred in connection with the taxpayer's trade or business,
allowable personal deductions and applicable personal and additional exemptions. Taxable
income with respect to corporations, associations and partnerships, means total gross
income less allowable expenses and contributions.
104 "Domestic taxpayer", when applied to any corporation , association, and partnerships,
means created, organized or domesticated under the laws of the State of Mississippi. The
fact that a domestic taxpayer moves its principal place of business without the state does
not preclude its classification as a domestic organization for income tax purposes.
105 "Foreign taxpayer ", when applied to any corporation or association, including
partnerships, means created or organized under the laws of a state other than Mississippi.
The fact that a foreign taxpayer carries on its business or occupation in Mississippi does
not set aside the foreign construction of the corporation, association or partnership.
106 The term "farm" embraces the farm in the ordinary accepted sense, and includes, but is
not limited to stock, dairy, poultry, fish, fruit and truck farms; also plantations, and all land
used for farming operations. All individuals, partnerships or corporations that cultivate,
operate or manage farms for gain or profit, either as owners or tenants, are designated as
farmers. A fish farm is an area where fish are grown or raised, as opposed to merely caught
or harvested; that is, an area where they are artificially fed, protected, cared for, etc.
107 A taxpayer is engaged in the "business of farming" if he cultivates, operates or manages a
farm for gain or profit, either as owner or tenant. A taxpayer who receives a rental (either
in cash or in kind) which is based upon farm production is engaged in the business of
farming. However, a taxpayer who receives a fixed rental (without reference to production)
is engaged in the business of farming only if he participates to a material extent in the
operation or management of the farm. A person cultivating or operating a farm for hobby,
recreation or pleasure rather than a profit is not engaged in the business of farming.
108 (Reserved)
35.III.1.01 revised effective January 7, 2019