Lewis Hamilton and his brother Alexander, both well-known professional race car drivers, have multiple investments and business
Question:
Lewis Hamilton and his brother Alexander, both well-known professional race car drivers, have multiple investments and business ventures which generate revenue throughout the year. You are the attorney for Lewis who has asked you whether the following transactions will be included in his gross income for 2022. Briefly advise Lewis.
A: $6,500,000 from winnings at various Formula One race track events.
B: $500,000 inheritance from the death of Lewis Hamilton's ex-wife's Mother-in-Law.
C: Because of his contacts in the racing world, Lewis is able to obtain unlimited practice time on race tracks.He decides to use the race track to let his daughter and her friends to learn to drive and put the required hours in to obtain their drivers licenses.
D: Gifts from various fans totaling $100,000 which he donates to various charities throughout the year.
E: Unlimited tires for both his personal cars and race cars totaling approximately $80,000.
F: Lewis was awarded a grant for $200,000 from Rageaholics Anonymous for a lifetime achievement of controlling his temper off the race track. At a ceremony honoring Lewis, Lewis requests Rageaholics to give the award to his personal foundation for the benefit of underprivileged drivers.
Organizational Behaviour Concepts Controversies Applications
ISBN: 978-0132310314
6th Canadian Edition
Authors: Nancy Langton, Stephen P. Robbins, Timothy A. Judge, Katherine Breward