20-23

Valentino is a patient in a nursing home for 45 clays of 2016. While in the nursing home, he incurs local costs of $13, 500. Medicare pays $8,000 of the costs. Valentino receives $15,000 from his long-term care insurance policy, which pays while he is in the facility. Assume that the daily federal statutory amount for Valentino is $340. Of the $15,000, what amount may Valentino exclude from his gross income? Mio was transferred from New York to Germany. He lived and worked in Germany for 340 days in 2016. Mio's salary for 2016 is $190,000. In your computation, round any division to four decimal places before converting to a percentage. For example, .473938 would be rounded to 47.39%. What is Mio's foreign earned income exclusion? Ellie purchases an insurance policy on her life and names her brother, Jason, as the beneficiary. Ellie pays $32,000 in premiums for the policy during her life. When she dies, Jason collects the insurance proceeds of $500,000. As a result, how much gross income does Jason report? Alfred owned a term life insurance policy at the time he was diagnosed with a terminal illness. After paying $18, 300 in premiums, he sold the policy to a company that is authorized by the state of South Carolina to purchase such policies. The company paid Alfred $125,000. When Alfred died 18 months later, the company collected the face amount of the policy, $150,000. As a result of the sale of the policy, how much is Alfred required to include in his gross income