Research NO: 2

Katie recently won a ceramic dalmatian valued at $800 on a television game show.  She questions whether this prize is taxable because it was a “gift”

Katie recently won a ceramic dalmatian valued at $800 on a television game show.  She questions whether this prize is taxable because it was a “gift” she won on the show.  

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a.  Use an available tax research service to answer Katie’s question.

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b.  Write a letter to Katie communicating the results of your research.

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