In the last several baseball seasons there have been some hits that marked notable (for baseball fans) milestones. One was Barry Bonds hitting a record- breaking 56th home run. Another was Derek Jester getting his 30th hit.
My question is about the fellow who caught the ball in each of these two events Derek Jesters 30th hit and Barry Bond’s 56th home run. The baseball in each case was estimated to be worth several hundred thousand dollars – did these men realize income at that moment?Hint: there are a couple of items in the assigned reading for today’s class Gross Income – Inclusions and Exclusions folder in Course Materials that might help you. ) 2. Do the recipients of the Oscar ‘swag bags’ have Income? If you think ‘no’ Is a good answer to Question 1 above, why might the swag bag cases be different? 3. After you’ve read Corrals v. Bowers and Hollering v.
Horst on Blackboard, you’ll be able to tell us why Hording had income (or did not) in 1961. Read the beginning of the “OPINION” portion in Hording v.Commissioner. Notice that the Taxpayer is making a two-part argument: (1 ) that the value of the car is not income, but, if it is, (2) it was income in 1961, not in 1962. Why is that second part of his argument important? 4. Eileen Is a cash basis attorney. In 2013, she performed services In connection with the formation of a corporation and received stock with a value of $5,000 for her services. By the end of the year, the value of the stock had decreased to $2,500.
She continued to hold the stock.Does Eileen recognize $2,500 of gross income or $5,000 r some other amount with respect to stock for 2013? 5. Tom owned stock that increased in value by $10,000 during the year, but he did not sell the stock. He earned $40,000 salary, although he “took home” only $29,000 because his employer had withheld $11,000 in federal and state income taxes and PICA.
Tom saved $5,000 of his salary and used the remainder for personal living expenses. How much was his gross Income for tax purposes for the year? 23rd. James, who is a cash basis taxpayer, is an employee who is on a ski trip untilJanuary 3rd of the new year. He is aware that his annual Christmas bonus arrives in the mail at his home on the 28th of December.
Must he include the bonus in his income for the current year or can he defer including it until the new year? 7. In December 2013, Eileen collected the December 2013 rent ($800) and the January 2014 rent ($900) from a tenant. Eileen is a cash basis taxpayer. How much income must Eileen include in her 2013 gross income $800 or $1700 or some other amount? Citation? 8. Loretta delivers pizzas for a pizza shop.
On Monday, December 31, 2012, Loretta made several deliveries and collected $350 from customers. However, Loretta forgot to turn in the proceeds for the day to her employer until Wednesday, January 2, 2013. Is the pizza shop owner required to recognize the income of $350 in 2012, when Loretta received it, or does he recognize it when he receives it from Loretta in 2013? .. Remember what you might have learned in Law 1300 – when the agent Answer.
(employee) receives it, so has the principal (the employer). 2012 income.