Question: Aries, age 2 9 , invests $ 1 2 , 0 0 0 in an annuity on January 1 , Year 1 . The annuity

Aries, age 29, invests $12,000 in an annuity on January 1, Year 1. The annuity payments are scheduled to start on January 1, Year 21. The annuity will then pay him $495 every month for life By January 1, Year 11 the cash value of the policy had increased to $22,000. Aries died on December 10, Year 49. How much will he be able to deduct from his taxes in Year 49 due to unrecovered capital?

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