While Using a Metal Detector at the Beach During Spring

question 11

Multiple Choice

While using a metal detector at the beach during spring break,Toni uncovered some rare coins with a current fair market value of $9,000.What are her tax consequences regarding this find?

• A)Because it was a "find" she only reports half of the FMV as income.
• B)She reports the entire FMV as income.
• C)Since she "found" the coins,she does not have to report any amount of income until she sells the coins.
• D)Under the discovery rules in the tax law,she will never report any amount as taxable since the value is under $10,000.

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Definitions:

Countercyclical Payment

A fiscal mechanism used to reduce the economic fluctuations by providing economic support during downturns and less support during growth periods.

Price Supports

Government interventions to maintain the market price of a commodity or product at a certain level by buying excess supply or instituting price floors.

Government

The organization or system through which a community, state, or nation is governed, often involving regulations and public services.

2014 Agriculture Act

is a piece of legislation in the United States that made changes to food, agriculture, rural development, and nutrition policies.