Question

Harold receives a life annuity from his qualified pension that pays him $5,000 remainder of his cost of the annuity. Which of the following correctly describes how the annuity payments are t cost of the annuity? per year for as long as he lives. Later this year Harold will recover the axed after Harold has recovered the Harod will continue to apply the annuity exclusio of each annuity payment inciudible in gross income. the annuit ratio to determine the amount Haroid will include the entire amount of each annuity payment in gross income The entire amount of each annuity payment is excluded from gross income after Haroid must request that the IRS calculate his exclusion ratio based upon a revised after he recovers the cost of the annuity. Harold recovers his cost of the annuity. ife expectancy OAll of these

Answer 1

Answer:

The correct option for Harold to do after he has received the cost of the annuity is to include the entire amount of each annuity payment in gross income

Explanation:

As the cost of the annuity has been received by  Harold and whatever he is receiving afterwards is the income. Thus he will include the complete value in the gross income and the taxes will be calculated accordingly.