A taxpayer, age 64, purchases an annuity from an insurance company for $90,000. She is to receive
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Question:
- A taxpayer, age 64, purchases an annuity from an insurance company for $90,000. She is to receive $750 per month for life. Her life expectancy is 20.8 years from the annuity starting date. Assuming that she receives $9,000 this year, what is the exclusion percentage and how much is included in her gross income?
- Round the exclusion percentage to two decimal places. Round the final answer for the income to the nearest dollar.
- Exclusion percentage: %
- Included in income: $
Related Book For
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman
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