On January 13, 2023, Jason, a cash basis taxpayer, was one of 3 winners of a $1.6 billion Powerball jackpot. Jason had the option to receive a one-time cash payment of $327.8 million or 30 annual payments of $17.8 million. Jason elected to receive 30 annual payments and received the first payment of $17.8 million on July 1, 2023. How much gross income does Jason have in 2023 as a result of the Powerball winnings?

Answer rating: 100% (QA)

As a cashbased taxpayer Jason recognizes income when he actually or ... View the full answer