Common use of Income items Clause in Contracts

Income items. Except as otherwise provided in this section, any item of income prop- erly taken into account during the rec- ognition period is recognized built-in gain if the item would have been prop- erly included in gross income before the beginning of the recognition period by an accrual method taxpayer (dis- regarding any method of accounting for which an election by the taxpayer must be made unless the taxpayer ac- tually used the method when it was a C corporation).