Reporting Gambling Wins (losses)

[MAJ]

Personally ----

I love the same questions for the EA Exam..

John bought a piano 10 years ago for $500. {First, where? I want one for $500}.
While cleaning it this year to sell it he found $10,000 hidden inside.

He sold the piano for $600.
What must John claim on his taxes....???

A - Nothing
B - $100.00
C - $10,100.00
D - None of the above..

Wording is not exact.. My question is - Where's the response..

E - $100 - but had a GREAT Vacations that year!!

LOL --- Enjoy!

[New York Enrolled Agent]

I love the same questions for the EA Exam..

John bought a piano 10 years ago for $500. {First, where? I want one for $500}.
While cleaning it this year to sell it he found $10,000 hidden inside.

He sold the piano for $600.
What must John claim on his taxes....???

A - Nothing
B - $100.00
C - $10,100.00
D - None of the above..

Wording is not exact.. My question is - Where's the response..

E - $100 - but had a GREAT Vacations that year!!

It appears you're suggesting that $100 is the correct answer (whether B or "E"). That is not correct. The correct answer is C. The $10,000 found is considered a treasure trove and the income tax regulation at §1.61-14 states that gross income includes treasure troves.

[Gene V]

Agree--here is a court case on Treasure Trove

http://en.wikipedia.org/wiki/Cesarini_v._United_States