5. Taxpayer (T), a cash basis individual taxpayer, lent money to each of his two daughters (D1 and D2) on January 1 of the current yer. T lent $50,000 to D1 and $110,000 to D2. T did not charge any interest on the loans. D1 was 19 years old and used the $50,000 to open a brokerage account which invested in stocks. D1 had $300 of net investment income during the year. D 2 was 26 years old and used the loan to renovate her personal house. D2 had no investment income during the year. The applicable federal rate AFR" is a 5% annual rate. The loans were outstanding for the entire year. What amount of income, if any, will T include on T's individual income tax return as a result of the loan to D2 D1 6. Taxpayer (T) a 59 year-old calendar year individual taxpayer purchased an annuity from an insurance company for $100,000 in 2019. The terms of the annuity were that the company would pay T $5,000 a year to T for the rest of T's life. How much income will T include in T's personal income tax return as a result of receiving the $5,000 payment in 2020? In 2050