The Tax Court decided several years ago that increases in the value of endowment policies under certain
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The Tax Court decided several years ago that increases in the value of endowment policies under certain circumstances are income. The court drew a distinction between endowment policies and other assets such as stock whose appreciation reflects price changes over time. The gain in value of an endowment policy results from the annual addition to the investment fund of the earnings on the investments, and the gain is not directly related to price changes.
Comment on the distinction.
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The distinction drawn by the Tax Court between endowment policies and other assets such as stocks i...View the full answer
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Related Book For 
An Introduction To Accounting And Managerial Finance A Merger Of Equals
ISBN: 9789814273824
1st Edition
Authors: Harold JR Bierman
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