Taxation Case

1. Would the results to the taxpayers in the Cesarini case be different if, instead of discovering $4,467 in old currency in the piano, they discovered that the piano, a Steinway, was the first Steinway piano ever built and it is worth $500,000?

The two cases are different.

In Steinway piano case, it is not taxable. Bargain purchase

Old currency, taxable

David:

Not taxable until at sale

Accretion to value, not treasure trove (tax codifications are different)

2. Winner attends the opening of a new department store. All persons attending are given free raffle tickets for a watch worth $200. Disregarding any possible application of I.R.C. 74, must Winner include anything within gross income when she wins the watch in the raffle?

Section 61 taxable

David:

Taxable Section 61

3. Employee has worked for Employer's incorporated business for several years at a salary of $80,000 per year. Another company is attempting to hire Employee but Employer persuades Employee to agree to stay for at least two more years by giving Employee 2% of the company's stock, which is worth $100,000, and by buying Employee's spouse a new car worth $30,000. How much income does Employee realize from these transactions?

$80,000+$100,000+$30,000

All is taxable.

这种情况和给Employee钱让他自己去买没区别。这些都属于gross income

David:

Taxable Not gifts

4. Insurance Adjuster refers clients to an auto repair firm that gives Adjuster a kickback (回扣) of 10% of billings on all referrals.

(a) Does