Tom is 68 years old. His employer pays the premiums for group term life insurance coverage of

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Tom is 68 years old. His employer pays the premiums for group term life insurance coverage of $110,000. The cost for Tom’s coverage is $3,000.

a. If the plan providing this coverage is nondiscriminatory and Tom is not a key employee, how much gross income does Tom have?

b. How does your answer to (a) change if Tom is a key employee?

c. If the plan is discriminatory, but Tom is not a key employee, what is Tom’s gross income?

d. How does your answer to (c) change if Tom is a key employee?

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Taxation For Decision Makers 2020

ISBN: 9781119562108

10th Edition

Authors: Shirley Dennis Escoffier, Karen Fortin

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Question Posted: Jul 27, 2023 03:54 AM

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Tom is 68 years old. His employer pays the premiums for group term life insurance coverage of

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a Tom must include 914 in income 110000 50000 excluded 60000 taxable coverage ...View the full answer

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