Question

の 3) 10 points fark, a cash-basis taxpayer, died on September 30, 2017. His wife, Charlote, provides you with the following From January 1,2017 until his death, Mark received a salary of $35,000 Charlotte received a salary of $68.000 during 2017. Mark had earned commissions of $20,000 which Charlotte reccived after his death. Charlotte was the beneficiary of a $100,000 whole life policy purchased by Mark and a $50,000 group policy purchased by Mark's employer. The employer had paid premiums f 20nMa the corporation paid Charlotte a $10,000 employee death benefit in Mark's name. received similar benefits What is the amount of their taxable income on their 2017 tax returm? term life insurance All employees' families regardless of financial need. Mark and Charlotte had itemized deductions of $15,600

Answer 1

Computation of Taxable Income:

Particulars	Mark	Charlotte	Total
Salary	$ 35,000	$ 68,000	$ 103,000
Commissions	$ 20,000		$ 20,000
Death Benefit	$ 10,000		$ 10,000
Adjusted Gross Income			$ 133,000
Itemized Deductions			($ 15,600)
Personal Exemptions			($ 4,050)
Taxable Income			$ 113,350

Notes:

1. The proceeds from a decedent's life insurance policy paid by reason of his or her death generally are excluded from income. The exclusion applies to any beneficiary, whether a family member or other individual, a corporation, or a partnership.

2. Personal exemption for the year 2017 was $ 4,050.