Mrs. A took out a life insurance policy for 500,000 naming her son as beneficiary. Under the terms of the policy, the insurer, Filipinas Insurance Corporation will pay Mrs. A the amount of 500,000 after the 25th year of the policy, or her beneficiary should she die before that date. Mrs. A outlived the policy and received the proceeds. The premium paid on the policy was 400,000. The proceeds from the life insurance policy of Mrs. A is Exempt from income tax Taxable to the extent of 100,000 Taxable in full Taxable to the extent of 400,000
Mrs. A took out a life insurance policy for 500,000 naming her son as beneficiary. Under the terms of the policy, the insurer, Filipinas Insurance Corporation will pay Mrs. A the amount of 500,000 after the 25th year of the policy, or her beneficiary should she die before that date. Mrs. A outlived the policy and received the proceeds. The premium paid on the policy was 400,000. The proceeds from the life insurance policy of Mrs. A is Exempt from income tax Taxable to the extent of 100,000 Taxable in full Taxable to the extent of 400,000
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 22CE: Ellie purchases an insurance policy on her life and names her brother, Jason, as the beneficiary....
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Mrs. A took out a life insurance policy for 500,000 naming her son as beneficiary. Under the terms of the policy, the insurer, Filipinas Insurance Corporation will pay Mrs. A the amount of 500,000 after the 25th year of the policy, or her beneficiary should she die before that date. Mrs. A outlived the policy and received the proceeds. The premium paid on the policy was 400,000. The proceeds from the life insurance policy of Mrs. A is
Exempt from income tax
Taxable to the extent of 100,000
Taxable in full
Taxable to the extent of 400,000
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