Greg has great health, he sells his life insurance policy on himself to an insurance company...
Homework Answers
Sale Price of Insurance Policy = $130000
Cost of Insurance Policy (Premiums as Cost) = $35000
Gross Income = Sale Price of Insurance Policy - Cost of Insurance Policy
= $130000 - $35000
= $95000
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Greg has great health, he sells his life insurance policy on
himself to an insurance company...
7. Victoria cashes in her life insurance policy and receives the cash surrender value of $250,000. She had paid $13...
7. Victoria cashes in her life insurance policy and receives the cash surrender value of $250,000. She had paid $130,000 in premiums. What are the tax consequences to Victoria? a. She recognizes no income from the transaction b. She must include all $250,000 in gross income c. She has income of $130,000 in the current year d. She recognizes $120,000 gain in the current year
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