Answered step by step
Verified Expert Solution
Question
1 Approved Answer
For each of the following independent situations, indicate the amount the taxpayer must include in gross income: a. Phil won $675 in the scratch-off
For each of the following independent situations, indicate the amount the taxpayer must include in gross income: a. Phil won $675 in the scratch-off state lottery. There is no state income tax. Amount to be included b. Ted won a compact car worth $20,100 in a TV game show. Ted plans to sell the car next year. Amount to be included c. Al Bore won the Nobel Peace Prize of $580,000 this year. Rather than take the prize, Al designated that the entire award should go to Weatherhead Charity, a tax-exempt organization. Amount to be included d. Jerry was awarded $6,200 from his employer, Acme Toons, when he was selected most handsome employee for Valentine's Day this year. Amount to be included e. Ellen won a $1,670 cash prize in a school essay contest. The school is a tax-exempt entity, and Ellen plans to use the funds to pay her college education. Amount to be included f. Gene won $695 in the office March Madness pool. Amount to be included
Step by Step Solution
★★★★★
3.41 Rating (160 Votes )
There are 3 Steps involved in it
Step: 1
Answer Explanation i IRS considers Lottery prizes taxable income In most st...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started