David Autrey was covered by an $80,000 group-term life insurance policy of which his life was the beneficiary. Autrey's employer paid the entire cost of the policy, for which the uniform annual premium was $8 per 1,000 of coverage. Autrey died during 2015, and his wife was paid $80,000 proceeds of the insurance policy. What amount of group-term life insurance proceeds must be included in gross income by Autrey's widow?
a. $0
b. $30,000
c. $50,000
d. $80,000
Answer: A
Tax
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- Mr. and Mrs. Alvin Charak took a foster child, Robert, into their home in 2015. A state welfare agency paid the Charaks $3,900 during the year for related expenses. Actual expenses incurred by the Charaks during 2015 in caring for Robert amounted to $3,000. The remaining $900 was spent by the Charaks in 2015 towards their own personal expenses. How much of the foster child payments is taxable income to the Charaks in 2015?
- Income in respect of a cash-basis decedent
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- In July 1996, Dan Farley leased a building to Robert Shelter for a period of fifteen years at a monthly rental of $1,000 with no option to renew. At that time the building had a remaining estimated useful life of twenty years. Prior to taking possession of the building, shelter made improvements at a cost of $18,000. These improvements had an estimated useful life of twenty years at the commencement of the lease period. The lease expired on June 30, 2015, at which point the improvement had a fair market value of $2,000. The amount that Farley, the landlord, should include in his gross income for 2015 is
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