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Bruno and Diana are trying to calculate their gross income. Which of the following items should they exclude from their gross income? 1. $15,000 gift from Diana’s mother for the down payment of their new
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Bruno and Diana are trying to calculate their gross income. Which of the following items should they exclude from their gross income? 1. $15,000 gift from Diana’s mother for the down payment of their new house. 2. $20,000 borrowed by Bruno and Diana from First City Bank. 3. $12,000 increase in value of Delta stock, which they own in their brokerage account. 4. $53,000 worth of home repair work that was exchanged for tax work by Bruno.

User Jkjustjoshing
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Answer: $15,000 gift from Diana’s mother for the down payment of their new house

Explanation: under the US code 102- Gifts and other inheritances. Gross income does not include the value of property acquired by gift. Money given as gifts to purchase a property are not taxable.

User Saeedgnu
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