A taxpayer, age 64, purchases an annuity from an insurance company for $78,000. She is to...
A taxpayer, age 64, purchases an annuity from an insurance company for $78,000. She is to receive $650 per month for life. Her life expectancy 20.8 years from the annuity starting date. Assuming that she receives $7,800 this year, what is the exclusion percentage and how much is included in her gross income?
Round the exclusion percentage to two decimal places. Round the final answer for the income to the nearest dollar.
|
Homework Answers
1. Expected Cash Flow = $650 Per Month * 20.8 Years * 12 Months
Expected Cash Flow = $162240
Exclusion Percentage = Annuity / Expected Cash Flow
Exclusion Percentage = 78000 / 162240
Exclusion Percentage = 48.08%
Exclusion amount = $7800 x 48.08%
Exclusion amount = $3750
Included in Income = $7800 - $3750
Included in Income = $4050
Add Answer to:
A taxpayer, age 64, purchases an annuity from an insurance
company for $78,000. She is to...
A taxpayer, age 64, purchases an annuity from an insurance company for $84,000. She is to...
A taxpayer, age 64, purchases an annuity from an insurance company for $84,000. She is to receive $700 per month for life. Her life expectancy is 20.8 years from the annuity starting date. Assuming that she receives $8,400 this year, what is the exclusion percentage and how much is included in her gross income? Round the exclusion percentage to two decimal places. Round the final answer for the income to the nearest dollar. Exclusion percentage: % Included in income: $
A taxpayer, age 64, purchases an annuity from an insurance company for $56,000. She is to...
A taxpayer, age 64, purchases an annuity from an insurance company for $56,000. She is to receive $467 per month for life. Her life expectancy is 20.8 years from the annuity starting date. Assuming that she receives $5,600 this year, what is the exclusion percentage, and how much is included in her gross income? Round the exclusion percentage to two decimal places. Round the final answer for the income to the nearest dollar. Exclusion percentage: 48.04 % Included in income:
A taxpayer, age 64, purchases an annuity from an insurance company for $56,000. She is to...
A taxpayer, age 64, purchases an annuity from an insurance company for $56,000. She is to receive $467 per month for life. Her life expectancy is 20.8 years from the annuity starting date. Assuming that she receives $5,600 this year, what is the exclusion percentage and how much is included in her gross income?
Calculator Exercise 4-26 (Algorithmic) (LO.4) taxpayer, age 64, purchases an annuity from an insurance company for...
Calculator Exercise 4-26 (Algorithmic) (LO.4) taxpayer, age 64, purchases an annuity from an insurance company for $82,000. She is to receive $683 per month for life. Her life expectancy 20.8 years from the annuity starting date. Assuming that she receives $8,200 this year, what is the exclusion percentage and how much is included in her gross income? Round the exclusion percentage to two decimal places. Round the final answer for the income to the nearest dollar. Exclusion percentage: Induded in...
At age 40, Nate purchased an annuity from an insurance company for $161,280. According to the...
At age 40, Nate purchased an annuity from an insurance company for $161,280. According to the terms of the contract, Nate will receive $2,000 per month for life beginning at age 66. Show all calculations using good form. Required: Assume that Nate did not make any withdrawals before he reached age 66. Nate begins receiving monthly annuity payments on 6/1/2020, the date he turns age 66. How much gross income does Nate recognize in 2020? 2. Assume that...
Susan purchased an annuity for $200,000. She is to receive $18,000 each year and her life...
Susan purchased an annuity for $200,000. She is to receive $18,000 each year and her life expectancy is 13 years. If Susan collects under the annuity for 14 years, the entire $18,000 received in the 14th year must be included in her gross income. True False
Cynthia, age 64, retired in June. Starting in July, Cynthia received $2,000 per month from an...
Cynthia, age 64, retired in June. Starting in July, Cynthia received $2,000 per month from an annuity She has contributed $260,000 to the annuity. Her life expectancy is 20 years. How much is excluded from income using the simplified method? Use 260 as the factor to divide by. 1. Enter total amount received this year 2. Enter cost in plan at the annuity starting date 3. Factor at annuity starting date 260 4. Divide line 2 by line 3 5....
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? ______________
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? ______________
30 pts Question 1 Jessie, age 53, is a single taxpayer. She earns a salary of...
30 pts Question 1 Jessie, age 53, is a single taxpayer. She earns a salary of $90,000. Her employer puts $5,000 into a qualified pension plan on her behalf and Jessie puts $7,000 in her pension plan. Her employer provides all employees with group-term life insurance equal to their salary ($90,000). Jessie put $2,000 in her flexible benefits plan. Her allowable deductions for AGI total $4,200 and she has $10,100 of allowable itemized deductions. In addition, Jessie received interest income...
A taxpayer, age 64, purchases an annuity from an insurance company for $56,000. She is to receive $467 per month for life. Her life expectancy is 20.8 years from the annuity starting date. Assuming that she receives $5,600 this year, what is the exclusion percentage, and how much is included in her gross income? Round the exclusion percentage to two decimal places. Round the final answer for the income to the nearest dollar. Exclusion percentage: 48.04 % Included in income:
Calculator Exercise 4-26 (Algorithmic) (LO.4) taxpayer, age 64, purchases an annuity from an insurance company for $82,000. She is to receive $683 per month for life. Her life expectancy 20.8 years from the annuity starting date. Assuming that she receives $8,200 this year, what is the exclusion percentage and how much is included in her gross income? Round the exclusion percentage to two decimal places. Round the final answer for the income to the nearest dollar. Exclusion percentage: Induded in...
Cynthia, age 64, retired in June. Starting in July, Cynthia received $2,000 per month from an annuity She has contributed $260,000 to the annuity. Her life expectancy is 20 years. How much is excluded from income using the simplified method? Use 260 as the factor to divide by. 1. Enter total amount received this year 2. Enter cost in plan at the annuity starting date 3. Factor at annuity starting date 260 4. Divide line 2 by line 3 5....
30 pts Question 1 Jessie, age 53, is a single taxpayer. She earns a salary of $90,000. Her employer puts $5,000 into a qualified pension plan on her behalf and Jessie puts $7,000 in her pension plan. Her employer provides all employees with group-term life insurance equal to their salary ($90,000). Jessie put $2,000 in her flexible benefits plan. Her allowable deductions for AGI total $4,200 and she has $10,100 of allowable itemized deductions. In addition, Jessie received interest income...
Most questions answered within 3 hours.
-
1. Which region has taken the lead in the world of
e-waste handling?
a) European Union...
asked 47 seconds ago -
If you’re standing at the bottom of a hill and asked to evaluate
it while being...
asked 7 minutes ago -
A 8.15- g bullet from a 9-mm pistol has a velocity of 366.0 m/s.
It strikes...
asked 1 hour ago -
The outstanding bonds of Alpha Extracts have a yield to maturity
of 7.4 percent and a...
asked 1 hour ago -
The Problem: The Case of the Harmonizing Vacations
Your CEO is exploring partnering with a European...
asked 2 hours ago -
A chemical equation is balanced by adding coefficients in front
of some formulas so that the...
asked 2 hours ago -
From the literature (reference your sources): What are the
lattice parameters of calcite and aragonite? Why...
asked 3 hours ago -
Your system is rejecting the question am asking which is
preceded by a case study. It...
asked 3 hours ago -
3. On January 2, 2000, Larry creates a trust with himself as
trustee. Larry as trustee...
asked 3 hours ago -
A member of the volleyball team spikes the ball. During this
process, she changes the velocity...
asked 3 hours ago -
Are adult gamers less likely to use a gaming console (Xbox,
PlayStation, Wii, etc...) than teen...
asked 4 hours ago -
The University of
Texas recently reported that 43% of college students aged 18-24
would spend their...
asked 4 hours ago