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6. Taxpayer (“T”) a 59 year-old calendar year individual taxpayer purchased an annuity from an insurance...

6. Taxpayer (“T”) a 59 year-old calendar year individual taxpayer purchased an annuity from an insurance company for $100,000 in 2019. The terms of the annuity were that the company would pay T $5,000 a year to T for the rest of T’s life. How much income will T include in T’s personal income tax return as a result of receiving the $5,000 payment in 2020? _____________ In 2050? ______________

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Answer #1

53 taable income is the part of interest portion of receiving 54 investment is done at the end of the year 2019 55 interest s

ipmt gives the interest portion of pmt which is taxable.

please ask if any query

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