tax2 - Individual Taxation 305 Assignment 2 1 Bob was allowed to exclude from the gross income only $120,000-$50,000=$70,000 gain This exclusion is

tax2 - Individual Taxation 305 Assignment 2 1 Bob was...

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Individual Taxation 305 Assignment 2 1. Bob was allowed to exclude from the gross income only $120,000-$50,000=$70,000 gain. This exclusion is allowed due to his terminal illness. He was supposed to use finds only as medical care. He was not using them in a right way. 2. Only the collections on the employer-sponsored income protection policy are taxable. The hospitalization benefits are excluded. Also both the premiums and the payments can be excluded under the rationale that the payments are a recovery of Ben’s premiums.
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  • Spring '11
  • Wife, Husband, employer-sponsored income protection

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