Chapter 2 - Gross Income and Exclusions - eduworklab

None of the payment is taxable. Life insurance proceeds received upon the death of the insured are generally considered to be tax-free and specifically excluded from taxable income. 79. Ordinarily life insurance proceeds are excluded from gross income. Why would they be taxable if the policy had been transferred for valuable consideration, prior to the death of the insured? ANSWER: If a policy ... ................
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