annuities - (b) What are the tax consequences if Bayleigh...

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Topic: Annuities Part 1: Annuity paid over fixed period . In January of 2010, Bayleigh (60 years old) purchased an annuity from TAMU Insurance Company. The annuity cost her $99,000 and will pay her $1,000 per month for the next 15 years. Required : How much does Bayleigh have to include in her gross income for 2010? Part 2: Single-life annuity . In January of 2010, Bayleigh (60 years old) purchased an annuity from TAMU Insurance Company. The annuity cost her $99,000 and will pay her $600 per month over the remainder of her life. Required : (a) How much does Bayleigh have to include in her gross income for 2010?
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Unformatted text preview: (b) What are the tax consequences if Bayleigh dies in February 2036 after receiving two payments in 2036? (c) What are the tax consequences if Bayleigh dies in September 2020 after receiving nine payments in 2020? Part 3: Joint-life annuity . In January of 2010, Sam (69 years old) purchased an annuity from TAMU Insurance Company. The annuity cost him $99,000 and will pay him $600 per month over the remainder of his life and upon his death, to his wife Bayleigh (67 years old) during her lifetime. Required : How much does Sam have to include in his gross income for 2010?...
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This note was uploaded on 09/09/2011 for the course TAX 6845 taught by Professor Kelliher,c during the Fall '08 term at University of Central Florida.

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