need answerr for this cost account Sam, a calendar year taxpayer, purchased an annuity contract for$3,600 that would pay him $120 a month beginning on January 1, 2011. Hisexpected return under the contract based his lifeonexpectancy is$10,800. Assuming Sam received a total of $1,440 in payments during2011, how much of this annuity income is included in Sam'sfor 2011, using the general rule?gross income

Step 1: Calculate the exclusion ratioExclusion Ratio = Investment in the Contract / Expected…

Answered: Sam, a calendar year taxpayer,…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 39P

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Virginia and Richard are married taxpayers with adjusted gross income of $28,000 in 2019 If Virginia is able to make a $1,500 contribution to her IRA and Richard makes a $1,500 contribution to his IRA, what is the Saver's Credit Virginia and Richard will be eligible for? $0 $1,500 $2,000 $3,000 $4,000
Minnie owns a qualified annuity that cost 78,000. The annuity is to pay Minnie 650 per month for life after she reaches age 65. Minnie turns 65 on September 28, 2019, and receives her first payment on November 1, 2019. a. How much gross income does Minnie have from the annuity payments she receives in 2019? b. Shortly after receiving her payment on October 1, 2034, Minnie is killed in an automobile accident. How does the executor of Minnies estate account for the annuity on her return for the year 2034? c. Assume that the accident does not occur until November 1, 2043. How does the executor of Minnies estate account for the annuity on her 2043 return?
Marlene, a cash basis taxpayer, invests in Series EE U.S. government savings bonds and bank certificates of deposit (CDs). Determine the tax consequences of the following on her 2019 gross income: a. On September 30, 2019, she cashed in Series EE bonds for 10,000. She purchased the bonds in 2009 for 7,090. The yield to maturity on the bonds was 3.5%. b. On July 1, 2018, she purchased a CD for 10,000. The CD matures on June 30, 2020, and will pay 10,816, thus yielding a 4% annual return. c. On July 1, 2019, she purchased a CD for 10,000. The maturity date on the CD was June 30, 2020, when Marlene would receive 10,300.
Sam, a calendar year taxpayer, purchased an annuity contract for $3,600 that would pay him $120 a month beginning on January 1, 2011. His expected return under the contract based his life on expectancy is $10,800. Assuming Sam received a total of $1,440 in payments during 2011, how much of this annuity income is included in Sam's for 2011, using the general rule? gross income
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Matt is age 75. He received $4,000 from an annuity in 2021. He paid $40,000 for that annuity in 2010. The annuity will pay Matt $4,000 a year, for 15 years, starting in 2011. How much of the $4,000 is included in Matt’s taxable income in 2021? ( ) $0 ( ) $4,000 ( ) $2,668 ( ) $1,332
Fifteen years ago, Mr. Fairhold paid $40,000 for a single-premium annuity contract. This year, he began receiving a $1,100 monthly payment that will continue for his life. On the basis of his age, he can expect to receive $249,600. Assume that on January 1, 2026, Mr. Fairhold's unrecovered investment in the annuity is $1,650. Required: a. How much of his total 2026 annuity payments ($13,200) are taxable? b. Assume that he dies in February after receiving only one $1,100 payment. What are the tax consequences on his final Form 1040?
5. Jeri purchased an annuity contract for $18,600 ($50/month for 15.5 years). The contract began paying Jeri and Christina monthly payments of $200 in June 2022, when Jeri turned 65 and Christina was 59. The contract will continue to pay monthly payments while Jeri and Christina are living. How much income should they report on their 2022 tax return related to the annuity payments? $980 $1,400 $1,050 $0
Shoshan, age 63, retired and began receiving retirement benefits on January 1, 2021. The benefits will be paid for the joint lives of Shoshan and his wife, Aviva, age 67. Shoshan had $36,000 in after-tax contributions to his qualified plan and had received no distributions prior to retirement. How much will Shoshan and Aviva be able to exclude from each of the annuity payments? a. $100 b. $116 c. $138 d. $171 which is correct a, b, c. or d?
Geoff purchased a life annuity for $4,800 that will provide him $100 monthly payments for as long as he lives. Based on IRS tables, Geoff’s life expectancy is 240 months. How much of the first $100 payment will Geoff include in his gross income?
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Len is entitled to receive monthly payments of $1,500 over his life from his employer's qualified pension plan. The payments begin January 1, 2019. He contributed $71,500 to the plan prior to his retirement at age 62. Using the simplified method, how much of the payments will be included in Len's taxable income for 2019? $14,700. $18,000. $3,300. $0.

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