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Jane wins a court case against a customer requiring the customer to pay her $10,000. The customer is unhappy with the result of the case
Jane wins a court case against a customer requiring the customer to pay her $10,000. The customer is unhappy with the result of the case and indicates that he plans to appeal, but pays the $10,000 to avoid interest on the amount in the event he loses the appeal. Jane must include the $10,000 in gross income even though she will have to repay the amount if she loses the appeal.
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