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22 October, 22:29

Cassie is preparing her federal income tax return. Which of the following items should be excluded from Cassie's gross income?

Royalties received by Cassie for her best-selling novel.

$100,000 in cash received by Cassie when her grandmother died.

Alimony received by Cassie from her ex-husband.

$5,000 of gain resulting from the sale of Cassie's favorite painting.

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  1. 22 October, 22:37
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    Answer:$100,000 in cash received by Cassie when her grandmother died.

    Explanation: In preparing federal income tax return, there are some income that are excepted from tax and they include:

    1. Any payment received as an inheritance

    2. Cash gift for the purchase of a property

    3. Income received as compensation for loss.

    4. Income earned outside the taxing jurisdiction.
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Home » Business » Cassie is preparing her federal income tax return. Which of the following items should be excluded from Cassie's gross income? Royalties received by Cassie for her best-selling novel. $100,000 in cash received by Cassie when her grandmother died.
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