Question

In 2017, Sandra's widowed aunt Marie died. Among her assets was a $360,000 life insurance policy naming Sandra as the sole beneficiary. Taking the advice of her financial advisor, Sandra elected to receive this money in the form of an annuity, with $48,000 to be paid to her annually for the next 10 years. The annuity terms were as follows:

360,000 face amount of annuity contract

48,000 annual annuity payment - (Sandra is to receive this payout each year on July 1)

What is the amount of this annuity is taxable for a 2019 tax return?

Answer 1

Date Page answer ? It is important to know that if the death benefit of Sandra's life insurance - policy is greater than the original - hace amount of life insurance policy, that difference amount is a Subject to income tax face amount of annuity Contract $360000- Marie will receive the total amount in lours - 48000 x 10 = $480000 Difference between the face value and death benefit = $480000 - $360000 $120000 & Doovo istanable annuity amour L in loyrs. Each yer Marie annuity amount which is tanable is & booo. $12000 is tauable annuity amount for 2019 tax returne?