Hermione must include the value of the nugget in her gross income. The value of the nugget is realized income because gold is marketable in a nugget
Hermione must include the value of the nugget in her gross income. The value of the nugget is realized income because gold is marketable in a nugget form and easily valued. The authorities (Reg § 1.61-14(a).; Rev. Rul. 61, 1953-1 C.B. 17) refer to the finder of a “treasure trove” and hold that there is gross income (to the extent of the ascertainable value in U.S. currency) in the tax year in which the property is reduced to the taxpayer’s undisputed possession.