Harrys wife Lila passes away in January of the current year. Fortunately, Lila had a $1 million

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Harry’s wife Lila passes away in January of the current year. Fortunately, Lila had a $1 million life insurance policy. Harry elects to receive all $1 million in the current year and spends $200,000 of it on a luxury around-the-world trip with his new girlfriend. Harry’s gross income from the life insurance is: 

a. $0 

b. $200,000 

c. $800,000 

d. $1,000,000

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Income Tax Fundamentals 2019

ISBN: 9781337703062

37th Edition

Authors: Gerald E. Whittenburg, Steven Gill

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