Are life insurance proceeds taxable to the recipient?
What will be an ideal response?
Life insurance proceeds payable because of the death of the insured are fully excludable from the gross income of the recipient. However, if proceeds are paid over time, payments are tax-free except to the extent the payments exceed the amount payable at the time of death. In this situation, the proportion of each payment that is tax-free is the excludable amount divided by the expected number of payments.
You might also like to view...
Marc works for F1 where his responsibilities include maintaining favorable relationships between the organization and its stakeholders. Marc is most likely employed in
A. sales. B. advertising. C. human resources. D. public relations. E. digital media marketing.
You invest $2,500 today at an interest rate of 20% compounded annually. How much will you accumulate after 35 years?
A) $1,476,670.57 B) $1,230,558.81 C) $1,506,203.98 D) $1,772,004.69 E) $1,974,367.39
Laurie wants to buy a used sports car. She is looking at three: (1 ) a 3-year old Porsche 911 Turbo Cabriolet; (2 ) a 4-year old Ferrari F430; or (3 ) a 4-year old Lamborghini Gallardo
The purchase price, annual operating costs and resale value for each car is given in the table, below. Laurie wants to buy the cheapest of the three cars. Which should she buy? Cash flows for Sports Cars ($000s) Time Porsche Ferrari Lamborghini 0 -150 -206 -190 1 -6 -6 -6 2 -6 -6 139 3 -6 134 0 4 -6 0 0 5 70 0 0 n 5 3 2 NPV = -$169.87 -$110.33 -$76.39 PVIFA 3.99271 2.577097 1.783265 A) Porsche B) Ferrari C) Lamborghini D) Either the Ferrari or the Lamborghini (both the same) E) All three are equally expensive
A prospective issuer of securities must hire which of the following:
a. a publicity agency b. an advertising agency c. a certified public accountant d. all of the other specific choices must be hired e. none of the other specific choices must be hired