Joanna received $60,000 compensation from her employer, the value of her stock in ABC company appreciated by $5,000 during the year (but she did not sell any of the stock), and she received $30,000 of life insurance proceeds from the death of her husband. What is the amount of Joanna's gross income from these items?

Question

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The $60,000 compensation from her employer is considered taxable income. The $5,000 appreciation in stock value is not taxable because unrealized gains (stock value appreciation without selling) are not considered income for tax purposes. The $30,000 of life insurance proceeds are generally not taxable. Therefore, only the $60,000 compensation is included in Joanna's gross income.

Joanna Received $60,000 Compensation from Her Employer, the Value of Her