# What amount- if any- must be included in gross income by the following.docx

Jan. 28, 2023
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### What amount- if any- must be included in gross income by the following.docx

• 1. What amount, if any, must be included in gross income by the following taxpayers? Please answer separately for each, A through D. A. Anne received \$2,000 from her insurance company when her automobile which cost \$3,000 was stolen. B. Barry received \$3,000 from his brother. Barry at initiated a lawsuit against his brother in an effort to recover \$3,000 he had previously loaned to him. The brother paid Barry back before the case was tried, and Barry dropped the lawsuit. C. Carry, an accountant, sued a client in order to collect her fee for doing tax work. Would Carry's accounting method make any difference? D. Dave has incurred \$6,000 of medical expenses so far this year. He paid \$400 of the expenses himself. His insurance company paid \$4,000 of the expenses. The hospital is suing Dave and the insurance company for the balance, \$1,600. Solution A. Taxes depend on the