Katie donates blood to a hospital on a regular basis (3 times a week). For each donation, she receives $175. She pays $20 in bus fare for each donation. Also, she spends about $135 per month for vitamins and regular doctor's checkups to safeguard her health in order to make such frequent donations. Katie has no other sources of income. What are the tax consequences of Katie's blood donations? Required: After you have copied and pasted the information here, close out of this Problem. Upload your completed document to the Timed Research Problem 1 Dropbox within 2 hours of starting. NOTE: YOU MUST LOOK FOR CASE LAW. Upload a document that provides the following information.

1) Give a simple, nontechnical 1 sentence answer to the question posed.

2) What is (are) the Code section(s) at issue? 3) Are any Treasury Regulations relevant?

3) Provide a step-by-step description of how you arrived at your answer and located the primary sources that you used to support it (include a discussion of the case law or Ruling authority on which you relied).