ACC 330 Module Two Income Assignment Template

Select three cases from the Module Two Income Assignment List. ( I have already selected the cases below) Research all three cases using the Tax Research Guide. Document your specific findings briefly and specifically as shown in the example.

Note: The Income Assignment List and the Tax Research Guide are located intheSupporting Materials section of the Module Two Income Assignment Guidelines and Rubric.

Criteria	Example	Case #1	Case #2	Case #3
Case Selected	Taxpayer D received royalties from authoring a textbook for a science course taught at the local community college.	Larry collected $4,500 in unemployment benefits from the State of Florida after being laid off from his former employer.	Cari's grandmother sent her $12,000 in May as a gift, and another $5,000 was paid directly to her school in August for tuition.	Justin received $12,000 in alimony payments for a divorce agreement settled in 2021.
Summary	Taxation of Royalties
Authoritative Primary Resource	IRC Section 61(a)(6) - Gross income defined. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section61&num=0&edition=prelim
Secondary Resource	IRS Publication 525 - Taxable and Nontaxable Income p. 17 https://www.irs.gov/pub/irs-pdf/p525.pdf
Supplemental Resource(s)	What is Taxable and Nontaxable Income? IRS.gov. March 14, 2022. https://www.irs.gov/businesses/small-businesses-self-employed/what-is-taxable-and-nontaxable-income#:~:text=Royalties%20from%20copyrights%2C%20patents%2C%20and,)%2C%20Supplemental%20Income%20and%20Loss. "Royalty Income: Everything You Need to Know" (2020) https://www.upcounsel.com/royalty-income
Opinion(Taxable or Nontaxable)	Taxable
Confidence Level (Low/Medium/High)	Medium
Interpretation	The IRC Section 61(a)(6) identifies that "Except as otherwise provided in this subtitle, gross income means all income from whatever source derived, including (but not limited to) the following items" and includes royalties as one of those items.
(Optional) Recommended suggestions or request for further information needed	Determine if the royalties received will be part of an ongoing writing business or contracted service (i.e. per Tax Adviser, "The IRS has ruled that an individual who writes only one book as a sideline and never revises it is not regularly engaged in an occupation or profession, and the book royalties are not considered earnings from self-employment. However, preparing new editions of the book and writing other books and materials reflect the conduct of a trade or business."