Great wrinkle. I will take a stab.
Facts: The Airline provided them with free peanuts and soda. And the Airline incurred a
little more fuel costs. But there were empty seats and there were no passengers on
Rule: Specific text 132(b)(2) - "no addi
The property received in the bartering transaction was received as a result of providing a
commercial service. The appreciated property is not recognized as a gain until the time
of sale because a profit has not been realized until the property is actuall
How would your answer to Problem 1 change if instead of flying on a regularly
scheduled flight on Oceanic Airlines, they flew on the XYZ corporate jet along with other
employees of XYZ who were flying on company business to the same location?
Lucky won three prizes on the game show a trip to Hawaii with a retail value of $1,300,
a car with a sticker price of $35,000 and $700 cash. Does she have gross income and, if
so, when and how much? [Ignore 74]
Facts: An individual named Lucky willingly p
John bought a used piano for $10,000 and immediately discovered that it was an antique
worth $750,000. Does he have gross income and, if so, when and how much?
will have income when he sells the piano. When and if John sells the piano for $750,000
- his i
Jody purchased a painting for $1,000. Five years later she needed cash so she sold the
painting for $1,000, its fair market value at the time of sale. Does Jody have gross
1. Treas. Reg. 1.61-1(a) states that gross income means all income from
John bought a used piano for $10,000 and found $500 cash inside. Does he have gross
income and, if so, when and how much?
Yes, John has gross income of $500 in the year in which he discovered/acquired the $500
cash found inside the piano. Pursuant to Reve
these three prizes lucky received on a game show were considered part of her gross
income on the condition that she accepts these prizes. if she declines, then there is no
to get the maximum participation points you'll need to upload a profile pic
How would your answer to Problem 1 change if there were no empty seats and other
people were waiting to fly standby?
Facts: no empty seats and other people were waiting to fly standby.
Rule: Five requirements must be met in order for fringe benefits to be
Yes, it is true that we did not have the $1,000 and now we do, but guess what. We used to
have a painting and now we don't any more. In essence, we traded $1,000 for the
painting. To determine whether we had an accession to wealth in that exchange, we