McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 75

This year, Janelle received $200,000 in life insurance proceeds.Under the following scenarios, how much of the $200,000 is taxable?
a.Janelle received the proceeds upon the death of her father, Julio.b.Janelle received the $200,000 proceeds because she was diagnosed with colon cancer (life expectancy of 6 months), and she needed the proceeds for her care.c.The proceeds related to a life insurance policy she purchased for $35,000 from a friend in need.After purchase, Janelle paid annual premiums that total $22,000.