Ron won a $25,000 award for his research in microbiology and he immediately transferred the prize to his brother who does similar research. The income is excluded from Ron's taxable income.

Question

Quizplus · Accepted Answer

Although the income was transferred to Ron's brother, Ron still received the award and therefore it is considered taxable income for him. The fact that he transferred the money to his brother does not change the taxability of the award for Ron.

Ron Won a $25,000 Award for His Research in Microbiology