Does the taxpayerrecognize gross income in the following situations? a. Ann is a

Question

Does the taxpayerrecognize gross income in the following situations?

a.     Ann is a filing clerk at a largeinsurance company. She is permitted to leave the premises for herlunch, but she always eats in the company’s cafeteria becausedoing so is much less expensive than purchasing a comparablemeal at a nearby restaurant. On average she pays $3 for a lunchthat would cost $8 at a restaurant.

b.     Ira is a resident adviser (RA) in acollege dormitory and is provided with lodging in the dormitory. Heis not required to pay the $250 per month that a room costs otherstudents. In addition, he is paid $200 per month.

c.      Seth recently moved to accept ajob. For the first six months on the new job, Seth was searchingfor a home to purchase or rent. During this time, his employerallowed Seth to live in an apartment the company has available forcustomers and employees.

Explanation / Answer

Except as otherwise provided in thissubtitle, gross income means all income from whatever sourcederived, including (but not limited to) the following items: (1) Compensation for services, includingfees, commissions, fringe benefits, and similar items; (2) Gross income derived frombusiness; (3) Gains derived from dealings inproperty; (4) Interest; (5) Rents; (6) Royalties; (7) Dividends; (8) Alimony and separate maintenancepayments; (9) Annuities; (10) Income from life insurance andendowment contracts; (11) Pensions; (12) Income from discharge ofindebtedness; (13) Distributive share of partnershipgross income; (14) Income in respect of a decedent;and (15) Income from an interest in anestate or trust.

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