Describe the rules for taxation of each of the following types of income. 1. Long Term Capital Gains and Losses 2. Annuity income 3. Amounts received from settlement of lawsuits or from court judgments.WEEK 2Homework Assignment 1Write an approximately 3-page paper. Describe the rules for taxation of each of the following types of income. Each response should be 1/3 to ½ page.1. Long Term Capital Gains and Losses2. Annuity income3. Amounts received from settlement of lawsuits or from court judgments. Specify the different treatment for (a) compensation for pain and suffering, (b) punitive damage awards, (c) compensation for mental and emotional distress, (d) compensation for lost wages4. Discharge of Indebtedness Income5. Scholarships6. Divorce payments: Alimony vs. Child Support vs. Property DivisionHomework Assignment 2Using a search engine, look up the Tax Court case of Regina M. Lomanno vs. Commissioner, 68 T.C.M. 565 (1994).1. Read the case. I suggest you print it out.2. Write an approximately 3-page summary of the case as follows:a) Summary of the factsb) The i