Your client, Simon Che, is an avid Texas Rangers fan. Last March at the Rangers home opener, as a result


Your client, Simon Che, is an avid Texas Rangers fan. Last March at the Rangers’ home opener, as a result of a random drawing of those in attendance at the game, Simon won 300 Shipley Do-Nut coupons. Each coupon entitled him to a cup of coffee and a free doughnut or a dozen doughnut holes.

Simon used some of the coupons (approximately 20), but he found that eating so many doughnuts directly conflicted with his goal of losing weight. The unused coupons expired on January 1, 2023. As a result, Simon was surprised when he received a Form 1099 in February 2023 that valued his prize at $900. Simon would like to know whether the value of the doughnut coupons should be included in income and asks you to research his question. If you conclude that their value should be included in income, Simon also would like to know if he can reduce his gross income by including in income only the value of the coupons that he used. He has the unused coupons as documentation that neither he nor anyone else used them.

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Related Book For  answer-question

South Western Federal Taxation 2023 Comprehensive Volume

ISBN: 9780357719688

46th Edition

Authors: Annette Nellen, Andrew D. Cuccia, Mark Persellin, James C. Young

Question Details
Chapter # 5- The Deduction for Qualified Business Income for Noncorporate Taxpayers
Section: Research Problems
Problem: 3
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Question Posted: September 24, 2023 07:29:09