Question

ndicate whether the following items are "Included in" or "Excluded from" gross income. a. During the year, that the taxpayer purchased stock as an investment which doubled in value. b. Amount an off-duty motorcycle police officer received for escorting a funeral procession. c. While his mother was in the hospital, the taxpayer sold some of her jewelry at a gain to help pay for the hospital bills. d. Child support payments received. e. A damage deposit the taxpayer recovered when he vacated the apartment he had rented. f. Interest received by the taxpayer on an investment in general purpose bonds issued by IBM. g. Amounts received by the taxpayer, a baseball "Hall of Famer," for autographing sports equipment (e.g., balls and gloves). h. Tips received by a bartender from patrons. (Taxpayer is paid a regular salary by the cocktail lounge that employs him.) i. Taxpayer sells his Super Bowl tickets for three times what he paid for them. j. Taxpayer receives a new BMW from his grandmother when he passes the CPA exam.

Answer 1

Answer:

Gross income refers to the income of an individual before taxes or any other deductions. It includes all type of income from all sources.

The list is as follows:

a. Excluded from

b. Included in

c. Included in

d. Excluded from

e. Excluded from

f. Included in

g. Included in

h. Included in

i. Included in

j. Excluded from