Question

Grady is a member of a large family and received the following payments this year. For each payment, determine whether the payment constitutes realized income and determine the amount of each payment Grady must include in his gross income. (Leave no answer blank. Enter zero if applicable.) a. A gift of $21,200 from Grady's grandfather. Is this payment realized income? Amount to be included

(Yes/No options on the "is this payment realized income?" question)

Answer 1

a. Is the payment dealized mome, Amount to be fr cluded les Pentroely exceeded from gesincome. The gPet Ps Terlized Income that I entfoely exclenedor Yes Is this payment realized income? Amount to be Pacluded so Inbegetarces are dealized income be GODSS Income. The increase Yo the vacce value o uce declized income boat are cotpoely excluded foom ease To The vacce value of the shades deeofg the year has not yet been wcalized. Gift for food motor Bonds: Is this payment realfred income ? Amount to be included I yes $0 Inteoest from the Books: Is this payment acarca income Yes Amoet to be inccluded $0 The gift of the bonds is reallzed income that is entirely excluded from gooss Pncome. The loterot accould up to Ubeo 31 1 excceded becelease ft was accould on the Rime of the gofl. Hence, the aceruild Income was past of the 9P64. goad y Ps taxed on Of Puteresee thel acued after the date of the girt Che & taxed on it cohen be receives it) a. Is this payment realfzed Income? No I Amount to be incleboda | 10 A bonafide loan 9s not realized encome. If the loan is achareely a disguiser 994, the ght woceed be stalized Income but the vooue is excluded from gooss income.