A taxpayer, age 64, purchases an annuity from an insurance company for $70,000. She is to receive $583 per month for life. Her lifeexpectancy is 20.8 years from the annuity starting date. Assuming that she receives $7,000 this year, how much is included in her grossincome?Round any percentages to two decimal places. Round the final answer for the income to the nearest dollar.Exclusion percentage:Included in income:48 X %

Exclusion percentage: = Purchase value of annuity / (Monthly payment × Life expectancy × 12) =…

Answered: pectancy is 20.8 years from the annuity…

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 21CE

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On January 1, 2019, Kunto, a cash basis taxpayer, pays 46,228 for a 24-month certificate. The certificate is priced to yield 4% (the effective interest rate) with interest compounded annually. No interest is paid until maturity, when Kunto receives 50,000. In your computations: a. Compute Kuntos gross income from the certificate for 2019. b. Compute Kuntos gross income from the certificate for 2020. Round any amounts to the nearest dollar.
A taxpayer, age 64, purchases an annuity from an insurance company for $80,000. She is to receive $667 per month for life. Her life expectancy is 20.8 years from the annuity starting date. Assuming that she receives $8,000 this year, how much is included in her gross income? Round any percentages to two decimal places. Round the final answer for the income to the nearest dollar. Exclusion percentage: Included in income: LA %
Age 60 61 62 63 65 66 67 64 68 69 80 81 82 70 71 83 84 85 86 87 88 89 90 72 73 74 75 76 77 78 79 Table I (Single Life Expectancy) (For Use by Beneficiaries) Life Expectancy 27.1 26.2 25.4 24.5 23.7 22.9 22.0 21.2 20.4 19.6 18.8 18.0 17.2 16.4 15.6 14.8 14.1 13.3 12.6 11.9 11.2 10.5 9.9 9.3 8.7 8.1 7.6 7.1 6.6 6.1 5.7 Age 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120+ Life Expectancy 5.3 4.9 4.6 4.3 4.0 3.7 3.4 3.2 3.0 2.8 2.6 2.5 2.3 2.2 2.1 2.1 2.1 2.0 2.0 2.0 2.0 2.0 1.9 1.9 1.8 1.8 1.6 1.4 1.1 1.0
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pectancy is 20.8 years from the annuity starting date. Assuming that she receives $7,000 this year, how much is included in her gross ome?