As a result, she is required to include $ in her gross income.Leland pays premiums of $7,250 for an insurance policy in the face amount of $36,250 upon the life of Caleb and subsequently transfers the policy to Tyler for $10,875. Over the years, Tyler pays subsequent premiums of $2,175 on the policy. Upon Calebs death, Tyler receives the proceeds of $36,250.

As a result, she is required to include $ in her gross income.