Harrys wife Lila passes away in January of the current year. Fortunately, Lila had a $1 million
Question:
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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Related Book For
Income Tax Fundamentals 2019
ISBN: 9781337703062
37th Edition
Authors: Gerald E. Whittenburg, Steven Gill
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