Federal Tax Research 10th Edition by Roby Sawyers,William Raabe,Gerald Whittenburg,Steven Gill

تمرين 15

Correctly cite the italicized sentence indicated by the dart ( ) in the following passage from the Code:
SECTION 74. PRIZES AND AWARDS
a. General rule
Except as otherwise provided in this section or in section 117 (relating to qualified scholarships), gross income includes amounts received as prizes and awards.
b. Exception for certain prizes and awards transferred to charities
Gross income does not include amounts received as prizes and awards made primarily in recognition of religious, charitable, scientific, educational, artistic, literary, or civic achievement, but only if-
1. the recipient was selected without any action on his part to enter the contest or proceeding;
2. The recipient is not required to render substantial future services as a condition to receiving the prize or award ; and
3. the prize or award is transferred by the payor to a governmental unit or organization described in paragraph (1) or (2) of section 170(c) pursuant to a designation made by the recipient.