Question: While vacationing you find a $100 bill on the beach. No one saw you find it. Assuming the finding meets the definition of gross income.

While vacationing you find a $100 bill on the beach. No one saw you find it. Assuming the finding meets the definition of gross income. Would you report it as taxable income. Why or why not? Would your answer differ if you found $100,000?

Discussion points:

Do you think that finding $100 meets the definition of gross income?

Is there a materiality threshold for when you have to report income?

Does not reporting the $100 violate tax law and/or ethical standards?

If you are more likely to report the $100,000, why? Does not reporting the $100,000 violate tax law and/or ethical standards?

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