Hania purchased a non-registered annuity with $ 300,000 of capital. The life annuity with no guarantee period will pay her a monthly income of $1,980, beginning one month after purchase. Her life expectancy has been determined at 18.5 years and she has opted for a prescribed annuity tax treatment. What amount of the monthly payment is taxable?

Answer rating: 100% (QA)

For prescribed annuities the monthly payment is a combination of a return of your principal not taxa... View the full answer