During 2019 David inherited $50,000 from her aunt, and also was the beneficiary of her aunt’s life insurance policy and collected $10,000. How much income does David have for 2022 from these events?
Income. During 2019 David inherited $50,000 from her aunt, and also was the beneficiary of her aunt’s life insurance policy and collected $10,000. How much income does David have for 2022 from these events?
Susan is the beneficiary of a $50,000 insurance policy on the life of her mother, Kayla. To date, Kayla has paid premiums of $16,000 on the policy. Kayla elects to cancel the policy and receive $21,000, the cash surrender value of the policy. How much gross income must Kayla report as taxable income?
Your aunt made you a beneficiary of her insurance policy. It is worth $200,000 and it will earn 5% interest over your expected lifetime of 45 years. How much income could you get if you take the income beginning immediately ( in other words the insurance is converted to an annuity due)?
1. Susan is the beneficiary of a $50,000 insurance policy on the life of her mother, Kayla. To date, Kayla has paid premiums of $16,000 on the policy. Kayla elects to cancel the policy and receive $21,000, the cash surrender value of the policy. How much gross income must Kayla report as taxable income? A. Kayla reports $5,000 of income. B. Kayla reports zero amount of taxable income. C. Kayla reports $21,000 of income. D. Kayla reports $50,000 of income....
Carla is the owner and beneficiary of a $300,000 policy on the life of her father. Carla sells the policy to her sister, Paula, for $100,000. Paula later pays premiums of $45,000. Upon her father's death, how much of the insurance proceeds must Paula include in income? A. $0 B. $155,000 C. $45,000 D. $300,000 16) Mary is the beneficiary of a $500,000 insurance policy on her husband's life. She elects to receive $52,000 per year for 10 years rather...
3. Felicia is covered by a $180,000 group term life insurance policy and her daughter is the beneficiary. Felicia's employer pays the entire cost of the policy for which the uniform annual premium is $8 per $1,000 of coverage. How much of this premium is taxable to Felicia? a. $0 b. $640 c. $1,040 d . $1,440 4. Scott, age 22, is a full-time student at State College and a candidate for a bachelor's degree. During the current year, he received the...
3. Mary's husband Ben died during the current year. She was the beneficiary of his life insurance policy in the face amount of $300,000. Because Mary likes to go on expensive vacations, she is concerned that she will spend all the money in a few months. She decides to leave the money with the insurance company and will take the money out over a period of ten years. In the current year, Mary receives a check for $34,000 from the...
In its 2016 income statement, Tow Inc. reported proceeds from an officer's life insurance policy of $90,000 and depreciation of $250,000. Tow was the owner and beneficiary of the life insurance on its officer. Tow deducted depreciation of $370,000 in its 2016 income tax return when the tax rate was 25%. Data related to the reversal of the excess tax deduction for depreciation follow: Year 2017 2018 2019 2020 Reversal of excess tax deduction $10,000 20,000 40,000 50,000 Enacted tax...
30. John takes out a life insurance policy on his life naming his wife, Mary, as the beneficiary, in the amount of $100,000. On John's death, Mary is paid $100,000 by the insurance company. Mary's taxable income from th receipt of the life insurance proceeds is: a. $100,000 b. $0 c. $100,000 reduced by the total of the premiums John had paid during his life d. 1/2 of the amount received (i.e., $50,000) 31. On November 15, 2018, X Corp.,...
In addition to her salary, Emily received the following amounts during the current year: Life insurance proceeds where she was the beneficiary $75,000 Qualifying dividend on corporate stock 5,000 Income from babysitting 300 Gift card from a drawing for filling out a survey at a local store 500 Gambling winnings from betting on the Kentucky Derby Gambling losses from a weekend in Las Vegas 1,000 600 By how much will these items increase her gross income? $6,300 $81,800 $6,200 $6,800...
Question 1 BWS Corporation pays the premiums on an $80,000 group-term life insurance policy on the life of its 45-year-old vice-president, Warren. The annual cost per $1,000 of coverage for a person aged 45 to 49 is $1.80. If Warren has paid $25 toward the cost of the insurance, what is the cost of hte policy includible in Warren's gross income? 1) $278.00 2) $144.00 3) $54.00 4) $29.00 5) $0 Question 2 During 2019, Edward East had wages of...