February 10, 2014 11:28 am

Taxing Olympic Gold

Income from whatever source derived is included in gross income unless there is a specific law treating the income as wholly or partially tax free. This means that the winnings awarded by the U.S. Olympic Committee to American medalists are taxable. These cash prizes are $25,000 for gold, $15,000 for silver, and $10,000 for bronze.

A bill in Congress called the Tax Exemptions for American Medalists (TEAM) Act would exempt these winnings from tax. A similar attempt to exclude winnings was made in Congress in 2012, but it failed at that time.

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Tax Glossary

Depreciation recapture

An amount of gain on the sale of certain depreciable property that is treated as ordinary income in the case of personal property. Recapture is computed on Form 4797.

More terms