Minnie owns a qualified annuity that cost $78,000. The annuity is to pay Minnie $650 per month
Question:
Minnie owns a qualified annuity that cost $78,000. The annuity is to pay Minnie $650 per month for life after she reaches age 65. Minnie turns 65 on September 28, 2021, and receives her first payment on November 1, 2021.
a. How much gross income does Minnie have from the annuity payments she receives in 2021?
b. Shortly after receiving her payment on October 1, 2036, Minnie is killed in an automobile accident. How does the executor of Minnie's estate account for the annuity on her return for the year 2036?
c. Assume that the accident does not occur until November 1, 2045. How does the executor of Minnie's estate account for the annuity on her 2045 return?
Step by Step Answer:
Concepts In Federal Taxation 2022
ISBN: 9780357515785
29th Edition
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher