McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 23

Katie recently won a ceramic dalmatian valued at $800 on a television game show.She questions whether this prize is taxable since it was a "gift" she won on the show.a.Use an available tax research service to answer Katie's question.b.Write a letter to Katie communicating the results of your research.