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Edgar is an author, who recently won a $30,000 literary award from the Wine Institute for one of his short stories dealing with a cask
Edgar is an author, who recently won a $30,000 literary award from the Wine Institute for one of his short stories dealing with a cask of Spanish wine. To avoid income tax issues, the Wine Institute told Edgar that the $30,000 was in the form of a gift. Does Edgar need to report any of the $30,000 as gross income? Question 1 options: a) No, because gifts are excluded from gross income. b) Yes, because he kept the $30,000. c) No, because literary awards are specifically excluded by IRC 74. d) Yes, because the Wine Institute is not a literary organization
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