hich of the following statements is true regarding a Section 1035 exchange of life insurance policies? ect one O A. O B. If Theo enters into a 1035 exchange of his whole life policy for a variable life policy there will be no tax on the exchange and the cost basis will carry over from the old policy to the new policy. Apollo, who has surrendered his universal life policy, can accomplish a 1035 exchange by using the cash surrender value to purchase another life insurance policy within 60 days of surrender. OC. Lucas can make a 1035 exchange of a policy on his life for a policy on the life of his spouse. OD. Athena can exchange her annuity for a life insurance policy under a Sec. 1035 exchange.

hich of the following statements is true regarding a Section 1035 exchange of life insurance policies? ect one O A. O B. If Theo enters into a 1035 exchange of his whole life policy for a variable life policy there will be no tax on the exchange and the cost basis will carry over from the old policy to the new policy. Apollo, who has surrendered his universal life policy, can accomplish a 1035 exchange by using the cash surrender value to purchase another life insurance policy within 60 days of surrender. OC. Lucas can make a 1035 exchange of a policy on his life for a policy on the life of his spouse. OD. Athena can exchange her annuity for a life insurance policy under a Sec. 1035 exchange.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter4: Gross Income

Section: Chapter Questions

Problem 2RP

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Sandeep Parikh purchased a variable life (VL) Insurance policy from the Homerun Insurance Company. Assuming Mr. Parikh's policy is a typical VL policy, it is correct to say that A )the subaccount investments of Mr. Parikh's VL policy are part of Homerun's separate account rather than its general account B) this policy provides a death benefit that remains constant throughout the life of the policy C) this policy offers Mr. Parikh a guaranteed minimum cash value D) Homerun alone assumes the investment risk for this policy
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