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

Real estate professional

An individual who, because of his or her real estate activity, qualifies to deduct rental losses from nonpassive income.

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