US Laws, Codes, Statutes & Cases

 
    §  11-627 Net income defined; computation. The term "net income" means
  the gross income of a taxpayer less the deductions allowed by this part.
  The net income shall be  computed  in  accordance  with  the  method  of
  accounting regularly employed in keeping the books of such taxpayer; but
  if  no  such method of accounting has been so employed, or if the method
  employed does not clearly reflect the income, the computation  shall  be
  made  upon  such  basis  and  in  such  manner  as in the opinion of the
  commissioner of finance does clearly reflect the income. In  determining
  net  income,  war  losses,  taxation of property recovered, and basis of
  property shall be treated in  substantially  the  same  manner  as  such
  losses, recoveries and basis are treated under the applicable provisions
  of section thirteen hundred thirty-one of the internal revenue code.