Determine the taxpayer gross income

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Reference no: EM13258609

Determine the taxpayer's gross income for tax purposed in each of the following situations:

a. Olga, a cash basis taxpayer, sold a corporate bond with accrued interest of $300 for $10,800. Olga's cost of the bond was $10,000.

b. Olga needed $10,000 to make a down payment on her house. She in structed her broker to sell some stock to raise the$10,000. Olga's cost of the stock was $3,000. Based on her broker's advice, instead of selling the stock, she borrowed the $10,000 using the stock as collateral for the debt.

c. Olga owned a vacant lot that was zoned for residential housing. She spent $900 in attorney fees to get the property rezoned as commercial. The property's value increased by $10,000 as a result of the rezoning.

Reference no: EM13258609

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