Question
John works as a salesman and has a salary of $30,000 in 2016. John also wins the Colorado Lottery Mega Millions prize and receives $25,000,000
John works as a salesman and has a salary of $30,000 in 2016. John also wins the Colorado Lottery Mega Millions prize and receives $25,000,000 in 2016. John is wondering whether the $25,000,000 is taxable. Which of the following is most true of Johns Gross Income?
Johns Gross Income is $30,000 because only salary and business income are taxable. | ||
Johns Gross Income is $30,000 because only salary, business income, and property transactions are taxable. | ||
Johns Gross Income is $25,030,000 because salary and prize winnings are specifically mentioned in the Internal Revenue Code. | ||
Johns Gross Income is $25,030,000 because all income from whatever source derived is taxable and includable in Gross Income unless specifically excluded by law. |
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