Statement 1: Proceeds of lifeinsurance received by the beneficiaryof the insured is a return on capital.Statement 2: The excess of proceedsover total premiums paid which isreceived by the beneficiary of theinsured decedent is gross income andis taxable. *a. Both statements are trueb. Both statements are falsec. Only statement 1 is trued. Only statement 2 is true

Answer: option (b) Both statements are false Explanation 1. Proceeds of life insurance received by…

Answered: Statement 1: Proceeds of life

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter28: Income Taxati On Of Trusts And Estates

Section: Chapter Questions

Problem 23P

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Statement 1: If an insured outlived his policy and received from the insurance company an amount equivalent to the total premiums paid, such amount is taxable. Statement 2: If the insured dies and the beneficiary receives payment from the insurance company, the amount received in excess of the total premiums paid shall be taxable. A. Both statements are true B. Both statements are false C. Only statement 1 is true D. Only statement 2 is true
MC: Topic: Income Taxation Statement 1: Proceeds of life insurance received by the beneficiary of the insured is a return on capital. Statement 2: The excess of proceeds over total premiums paid which is received by the beneficiary of the insured decedent is gross income and is taxable. * Both statements are true Both statements are false Only statement 1 is true Only statement 2 is true
The coinsurance penalty promotes which of the following? O Application of the deductible All of the above. Equitable rates for all policyholders. O Equitable distribution of loss payments for all policyholders.
Annuity payments received by a taxpayer represent a part which is taxable and non taxable. Which of the following statement is correct? O Return of premium is taxable O Return on premium is non-taxable Both statements are correct O Both statements are not correct
1. All of the following are examples of legal liabilities, except for a. notes payableb. sales tax payablec. sick pay payable (may be taken as time off)d. property taxes payable
Which statement is not correct? a. Related-party income is taxable b. Related-party losses are non-deductible c. Grantor and fiduciary of a trust are related parties d. None of the above
Multiple Choice Qsn .You have to choose one answer. 1.Which of the following statements is correct? a. Gains that are ordinary income will be assessable income under s .6-5 of ITAA 1997. b. Gains will be ordinary income if they are the type of gains that courts of law consider to be of an income character. c. A gain that comes in regularly/periodically is more likely to be ordinary income than a lump-sum gain. d. Whether or not a gain arises from an illegal activity does not affect whether it is ordinary income. e. All of the above. (2) Which of the following statements is correct? a. Capital gains and capital losses arising from a CGT event are always assessed to the individual partners of a partnership according to their interest. b. partner can have more than one interest in a partnership asset. c .There is a disposal of part of an interest in a partnership asset whenever a new partner is admitted to a partnership. d.All of the above
Statement 1: Deductions for business expenses for the taxable periods are those that benefit all accounting or taxable periods of the taxpayer. Statement 2: Capital expenditures are those that affect or benefit future accounting periods. * a. Both statements are true b. Both statements are false c. Only statement 1 is true d. Only statement 2 is true
Which of the following statements is / are correct?1. Some tax credits are refundable.2. Some tax credits are nonrefundable.a. 1 only.b. 2 only.c. Both 1 and 2.d. Neither 1 nor 2.
Q5: Research about and in your own words, describe the different EXCLUSIONS FROM GROSS INCOME: Ø Proceeds of life insurance policyØ Amount received by the insured as a return of premiumØ Gift, bequest, or descentØ Compensation for injuries or sicknessØ Income exempt under treatyØ Retirement benefits, pensions, gratuities, etc.
Regarding the calculation of realized Gain or Loss, which of the following are true: O A. If the amount realized exceeds the property's adjusted basis, the result is a realized gain. O B. If the property's adjusted basis exceeds the amount realized, the result is a realized loss. O c. The amount realized from a sale or other disposition of property is the sum of any money received (which includes any debt relief) plus the fair market value of other property received. O D. The fair market value is reduced by selling expenses such as advertising, commissions, and legal fees associated with the sale or other disposition. O E. All of the above are true OF. None of these are true OG. A, B are true OH, B, C, D are true OI. A, B, C are true OJ. B & D are true OK. C & D are true
e following statements about annuities are true? Ch hnuity due earns more interest than an ordinary ann

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