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Pay Tax on Found Money? [Video]

Pay Tax on Found Money?

If you find buried treasure, are you subject to income tax?

In 1957, a husband and wife bought a used piano for $15 at an auction.

They were cleaning the piano seven years later and found $4,467 cash inside the piano.

The couple said the money wasn’t taxable.

Here’s their argument:
• Congress had enacted § 74 to say prizes and awards are taxable, but § 74 didn’t mention anything about being taxed if you found a treasure trove
• The couple said the money should be treated as a gift, and thus nontaxable under § 102

But a court of law disagreed, saying all income is taxable unless the tax code says otherwise.


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