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<h1>Clubbing of income: inclusion of another person's losses can reduce a taxpayer's net taxable income under clubbing rules.</h1> Clubbing of income requires that the income of a specified person be included in an individual taxpayer's total income and for this purpose the term income expressly encompasses a loss; losses falling within the clubbing rules must be carried into the individual's computation and will affect the individual's net taxable income, including by reducing the net tax liability.