Question
What amount, if any, must be included in gross income by the following individuals? 1.Ann received $2,500 from her insurance company when her car which
What amount, if any, must be included in gross income by the following individuals?
1.Ann received $2,500 from her insurance company when her car which cost $3,500 was stolen.
2.Barry received $3,500 from his brother. Barry had initiated a lawsuit against his brother in an effort to recover $3,500 he had previously loaned to him. The brother paid Barry back before the case was tried, and Barry dropped the lawsuit.
3.Cheryl, an accountant, sued a client in order to collect her fee for doing tax work. Would Cheryls accounting method make any difference?
4.Darryl has incurred $7,000 of medical expenses so far this year. He paid $500 of the expenses himself. His insurance company paid $4,500 of the expenses. The hospital is suing Darryl and the insurance company for the balance, $2,000
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