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Simora [160]
3 years ago
11

Jay, a single taxpayer, purchased an annulty to help provide income during his retirement. He paid $36,000 for the annuity that

provided a monthly benefit starting at his retirement date for the rest of Jay's life. His life expectancy at the time of his retirement was 180 months. Jay collected 192 payments before he died.
Which of the following is true?
a. Since Jay is no longer working, none of the payments must be included in his gross income.
b. The first $36,000 received is a nontaxable recovery of capital, and all subsequent annuity payments are taxable.
c. If Jay's income is below $25,000, none of the payments he receives are taxable.
d. All of the last 12 payments he received are taxable.
Business
1 answer:
Rufina [12.5K]3 years ago
4 0

Answer:

d. All of the last 12 payments he received are taxable.

Explanation:

In the case when the life expectancy is 180 months and collected 192 payments prior he died

So according to the question, all the 12 payments would be received are taxable

Here the payment that received for 180 months would not be involved in the gross income and the remaining 12 payment would be taxable

Therefore the option d is correct

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Answer:

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OlgaM077 [116]

Answer:

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Repeat: the repetition is nothing more than identical identical forms that appear more than once in the design, that is to say, it would be a question of using the same element several times and distributed throughout the composition.

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