1. Today is December 31,2018. Today Kanye pays $10,000,000 to buy an annuity. In return, annuity pays Kanye (or Kanye’s roommate if Kanye is dead) $1,200,000 a year (every December 31) for ten years, guaranteed. First payment to Kanye of $1,200,000 is December 31,2019 and the last payment of $1,200,000 is December 31,2028. How much of the $1,200,000 annuity payment in 2019 is EXCLUDABLE from AGI/ taxable income for year 2019? Kanye is still alive at the end of 2019.
   1. 1,200,000
   2. 200,000
   3. 800,000
   4. 1,000,000
   5. 666,667

Answer rating: 100% (QA)

d 1000000 option d is correct because in case you receive income ... View the full answer