Question

While vacationing you find a $100 bill on the beach. Nobody saw you find it. Assuming the find meets the definition of gross income.

Would you report it as taxable income? Discuss the two parties involved and how they would be affected by your decision.

Answer 1

The money you found on the beach will be taxable because Internal revenue services has considered that any kind of "Found" Property or Cash will come under the taxable income. In this case, we are also giving that money a definition of gross income so it must be taxable.

The parties involved in this case were the person who found that and the Internal Revenue Service department according to the rules because the taxpayer must report the income from any source unless it is exempted under tax code. These income will also be considered as taxable income by the revenue department.