ASSIGNMENT 1 FIT

Please provide the complete Internal Revenue Code in response to the following fact patterns (don't just Google the answer):

1.  A client comes to your office to complete her Federal income tax return.  She provides you her W-2 statements.  When asked whether she received any cash or income during the year, she tells you that she inherited $100,000 cash from her deceased uncle who died during the tax year.  The money was granted to her through her uncle's will.  The money was in her uncle's saving account at the time of his death and it was not derived from income producing property.  She wonders whether the $100,000 should be counted as income or not.  Is the client expected to report the $100,000 cash as income?  Regardless of your answer, please cite the complete Internal Revenue Code statute that supports your response.

2.  In 2020, a client's 8 year old child earned $10,000 in compensation for being featured in a national TV commercial.  The client want to report this income onto her Form 1040.  Cite the Internal Revenue Code statute that supports whether the client can or cannot include the income into her own return as the parent.

Please be sure to also discuss how you found the answer supporting your answer.