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Tax research case

Tax research case. The taxpayer, a resident of California, appeared on a television quiz show and won a new sailboat.  The producer of the program had paid $15,000 for the boat.  However, the taxpayer had no interest in sailing and needed cash.  The taxpayer visited several boat dealers to offer the boat for sale.  She eventually sold the boat to a dealer for $12,000.  The IRS contends the taxpayer’s income from the prize is $15,000.  Is the IRS correct?

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