Question

Which of the following is/are accurate? Check all that are accurate.

Check All That Apply

• Julia, an actress, was nominated for an Academy Award. As a result, she received a swag bag full of various gifts, including jewelry, makeup, artwork, and a trip. Julia must include the value of the swag bag in her gross income. Julia, an actress, was nominated for an Academy Award. As a result, she received a swag bag full of various gifts, including jewelry, makeup, artwork, and a trip. Julia must include the value of the swag bag in her gross income.

• Tom is a football player that won the Superbowl MVP award. As part of the award, Tom received a truck. Tom must include the value of the truck in his gross income. Tom is a football player that won the Superbowl MVP award. As part of the award, Tom received a truck. Tom must include the value of the truck in his gross income.

• Mark is a treasure hunter. Mark went scuba diving at an old shipwreck off the coast of Florida and found a pile of gold coins in the ship. Mark must include the value of the gold coins in his gross income. Mark is a treasure hunter. Mark went scuba diving at an old shipwreck off the coast of Florida and found a pile of gold coins in the ship. Mark must include the value of the gold coins in his gross income.

• Melissa's father gave her a new car as a graduation gift. Melissa must include the value of the car in her gross income.

Answer 1

1). any awards other than awards offered by government are taxable and added in gross income. julia, an actress recieved swag bag are added in gross income. hence julia is accurate.

2). any award or prices recieved for any sports work are exempted from taxable income. hence tom is not accurate and need not add award in gross income.

3). any thing from treasure hunting are taxable at their face value. gold coins tresured by mark is taxable hence been added in gross income. mark is accurate

4). any property gift by a relative is not taxable under the reciever's income. hence malissa is not accurate and value of car is not included in her gross income