Bob and carol was divorced and Bob no longer wanted to keep the $100,000 life insurance policy he had previously purchased. He sold the policy to his friend Bill for $10,000 and Bill named himself the policy beneficiary. Over the years until bob death. Bill paid additional premiums totaling $3,000. 

How much if any of the $100,000 death benefit bill received must he include in his income for tax purposes?

Answer rating: 100% (QA)

The tax treatment of life insurance proceeds can be complex and it often depends on various factors ... View the full answer