Larry Sorich, as part of his estate planning, assigned his $100,000 group-term life insurance policy to his

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Larry Sorich, as part of his estate planning, assigned his $100,000 group-term life insurance policy to his niece.

Larry's employer provided for only $50,000 of coverage; therefore, the niece paid for the premiums on the supplemental insurance.

Larry did not include in gross income the premiums for the supplemental insurance.

Larry's accountant challenged him on this arrangement. Who prevailed? See Rev. Rul.

71-587, 1971-2 CB 89.

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CCH Federal Taxation Basic Principles 2020

ISBN: 9780808051787

2020 Edition

Authors: Ephraim P. Smith, Philip J. Harmelink, James R. Hasselback

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Question Posted: Feb 18, 2024 07:28 AM

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Larry Sorich, as part of his estate planning, assigned his $100,000 group-term life insurance policy to his

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SOLUTION Based on the facts provided and Revenue Ruling 71587 Larrys employer provided 50000 of grou...View the full answer

CCH Federal Taxation Basic Principles 2020

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