On March 1, 2019 George purchased a life annuity for $12,000 that will provide him $200...
On March 1, 2019 George purchased a life annuity for $12,000 that will provide him $200 monthly payments for eight years. The first payment was received on April 1, 2019. How much income related to this annuity will George include in his 2019 gross income?
Homework Answers
Annuity Income included in George's 2019 gross income = $200*9 = $1,800
Qualified annuity payments are taxable as income.
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On March 1, 2019 George purchased a life annuity for $12,000
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