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(1) Each of the named recipients of money or property below is your 2020 tax return client. All relevant facts, of which you are fully

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(1) Each of the named recipients of money or property below is your 2020 tax return client. All relevant facts, of which you are fully aware, occurred in 2020. In a few sentences, describe how comfortable you would or would not be in treat- ing each of these individuals' circumstances as reflecting a tax-free gift (therefore not reportable on Form 1040), and why. Note: I'm asking for your well-defended opinion here - there is no absolutely "right" or "wrong" answer. (a) Timmy and Tammy have been seeing each other for the better part of a year. On Valentine's Day, Tammy surprises Timmy with a $3,500 top-of-the-line Trek mountain bike... (b) Billy works as the personal assistant to the CEO of ABC Corp., and she (the CEO) likes Billy very much. Very much - in fact, at her initiation the two of them sometimes engage in after-hours activities of the kind more commonly associat- ed with romantic couples (although they aren't really). On Billy's birthday she surprises him with a top-of-the-line Trek mountain bike. The $3,500 cost is not included on Billy's W-2... (c) Franny, a college student, receives no financial support from her family- she's on her own and is paying her own way through school. Franny is much too busy to hold down even a part-time job. However, she does list herself on a "sugar baby" website and on weekends finds time to see one or more gentlemen, all of whom are very generous. Franny does nothing illegal but does accept ex- pensive gifts, sometimes money, very appreciatively. One of her gentlemen- friends, for example, pays the rent on her apartment... (d) Dani is a hard-working server at an expensive restaurant. One evening, after a customer leaves, she finds that he has left not only the signed credit card bill including the standard 20% tip, but also $1,000 cash. And his business card

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