Class, please read the above posts. The economic benefit doctrine helps elaborate the main principle that gross income is defined under the broad language of Code § 61(a) of the Internal Revenue Code as all income from whatever source derived. For example, compensation may be paid to taxpayers in many different ways, such as in cash, bonus, in-kind compensation, profit sharing, or other methods of payment. The economic benefit doctrine says that no matter what the form, whether cash, receivables, property, land, or another form, as long as there is economic benefit, it must be included in income.
An important concept to remember is that the form in which income is received does not matter.

Income may be received as property or as services.
It may be received indirectly, such as when an employer pays an employee's tax or other expense. Also, the cancellation of a debt or the receipt of an interest-free loan may constitute income.
When income is received in a form other than money, the measure of the income is fair market value.
What if a doctor performed plastic surgery on a lawyer in exchange for the lawyer handling his divorce? Does either have income?