Lisa and Joe are married. Lisa has a 15 year old daughter (Luna) from her previous marriage. Lisa works as an engineer for Engineering and earns a salary of $215,000. Joe has his own real estate company. Lisa received $4,500 of interest from corporate bonds and $2,250 of interest from a municipal bond. Lisa acquired these bonds prior to her marriage with Joe. Joe's father passed away on April 14. He inherited cash of $250,000 and a stamp collection valued at $7,000. As beneficiary of his father's life insurance policy, Joe also received $350,000. The couple also reported the following during the current year.

Lisa received $5,500 in child support payments during the year.

Joe won a $4,250 cash price at a team raffle.

Lisa borrowed $52,000 to purchase a car. The company charged her 2% interest on the loan, which she paid off on December 31, but they would have charged her $2640 if interest was calculated at the applicable federal rate.

The couple bought 900 shares of stock for $20 per share on July 2. The stock was worth $32 a share on Dec 31. The stock paid a dividend of $3.00 per share on Dec 1.

Lisa received $1,400 cash and made a mantle clock valued at $395 for reaching 10 years of service. She donated the cash to the local food bank- a charitable organization.

Lisa is a 40% owner in a subchapter S corporation. The company reported ordinary business income for the yr of $48,000. Lisa acquired the stock 2 years ago.

Joe collected $45,000 in commissions for home sales and realtor services. During the year, he spent $2,500 for supplies, $6,500 for utilities, $12,000 for office rent, and $3,1000 for misc expenses. One client have him use of his vacation home worth $3,900 in exchange for realtor services. Joe uses the cash method of accounting.

For meeting her performance goals this year, Lisa was informed on Dec 23 that she would receive a $10,000 year end bonus. Lisa didn't receive the check until January 2nd.

What is the gross income? What is included and not included?