Robert has a single premium deferred annuity that was purchased on July 1, 1985, for $60,000 and is currently worth $233,047. The expected return over the next year and the 15 years of the fixed term of the annuity is 6%. The start date of the monthly annuity is January 1, 2021, when the expected fair market value will be $247,030.

1.Assuming that Robert begins his single premium deferred annuity on the start date of January 1, 2020, what will be his tax consequences from the annuity payments received in 2020?