The 12000 hospital payment is taxable because the

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Income Tax Fundamentals 2020
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Chapter 5 / Exercise 25
Income Tax Fundamentals 2020
Altus-Buller/Whittenburg
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The $12,000 hospital payment is taxable because the gift is likely taxable income to her estate, as income in respect of the decedent, because the gift exclusion does not apply to payments by the employer to the employee. 108. What are the tax problems associated with payments received by a wife from her deceased husband’s employer? (Assume the wife renders no services to the employer.)
109. Bob had a terminal illness and realized that he “can’t take it with him.” Therefore, he cashed in his insurance policy and received $120,000. He had paid $50,000 in premiums on the policy. He used the money to fulfill his lifelong ambitions of going to the Super Bowl, driving an expensive sports car, and vacationing in Bermuda. Was Bob’s behavior consistent with the Congressional intent in providing the tax exemption he was permitted to use?
110. Ben was hospitalized for back problems. While he was away from the job, he collected his regular salary from an employer-sponsored income protection insurance policy. Ben’s employer-sponsored hospitalization insurance policy also paid for 90% of his medical expenses. Ben also collected on an income protection policy that he purchased. Which of the above sources of income are taxable? Explain the basis for excluding any item or items.
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Income Tax Fundamentals 2020
The document you are viewing contains questions related to this textbook.
Chapter 5 / Exercise 25
Income Tax Fundamentals 2020
Altus-Buller/Whittenburg
Expert Verified

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