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Tickets From Overbooked Flights: Ethically Reportable Taxable Income or Free Gifts

Reed McKnight, Leigh W. Cellucci, Carl E. Keller Jr.
January 1, 2013
SKU:
BUS-004240
Region: 
North America
Topic: 
Accounting & Finance
Length: 
6 pages
Keywords: 
Tax avoidance, tax evasion, free gifts, taxable income, ticket vouchers
Student Price: 
$4.00

Harrison and Joan were working on their income tax return and suddenly Harrison remembered free” ticket vouchers that he and Joan had received as compensation for giving up their airline seats on one of their trips. He had not been notified that the airline had reported these to the IRS, and he wondered if they were taxable income. Did they have to include them in their tax return?