Problem regarding taxable income


1) Your brother is short on cash and cannot pay his rent this month. You pay his rent for him. Is this taxable income to your brother? Do you get a deduction?

2) Which of the following items would be excluded from income?

(a) $100 bill found under the sugar caddy at the restaurant.

(b) Inheritance of a car from your grandmother valued at $5,000.

(c) Loan from your father-in-law to start your business.

(d) Child Support received totaling $16,500.

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Accounting Basics: Problem regarding taxable income
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