Question

Which of the following cash receipts are taxable to the recipient?

a. Gambling winnings
b. Prizes
c. Child support
d. Loan Proceeds
e. Awards

Answer 1

Gambling winnings and prizes are taxable cash receipts, while child support and loan proceeds are not.

Step-by-step explanation:

Which of the following cash receipts are taxable to the recipient?

1. Gambling winnings: Yes, gambling winnings are taxable as income by the recipient.
2. Prizes: Yes, prizes are generally taxable as income unless specifically exempted.
3. Child support: No, child support is not taxable.
4. Loan Proceeds: No, loan proceeds are not taxable because they are borrowed money.
5. Awards: Yes, awards are generally taxable as income unless specifically exempted.