Question

Memo #2

Instructions:

Please respond to the following hypothetical questions from your hypothetical client(s). These questions are isolated questions. That is, you should have a separate page for each question. Note, the facts and circumstances below are based on real-world questions that I, and other colleagues, have received as tax professionals.

1. Question #1

Hi CPA,

I received $10,000 as a gift from my grandma. Do I have to report this to the IRS?

Thanks,

Client

2. Question #2

Hi CPA,

I won $1,000 dollars in a corn hole tournament; do I have to report this as income on my tax return? I received the winnings in cash… does this make a difference?

Thanks,

Client

3. Question #3

Hi CPA,

My poor Basil has had it hard this year. In 2022, I expect to have spent up to $3,500 for chemotherapy. Is it at all possible to include these on my tax return as a deduction? I, also, expect to have spent $25,000 on braces/dental for my three children. Can I deduct these as medical expenses?

Thanks,

Client