Tax Treatment of Life Insurance Proceeds (Currently Unavailable)

Author: Paul J. Winn

CPE Credit:  5 hours for CPAs
5 hours Federal Tax Related for EAs and OTRPs
5 hours Federal Tax Law for CTEC

This course explains the customary income tax treatment given to life insurance policy withdrawals, loans, surrender proceeds and death benefits.

Designed For
Registered tax return preparers and tax practitioners.

Topics Covered

  • Tax treatment given proceeds from life insurance policies
  • Consider the taxation of death benefits, cash value withdrawals, loans and surrenders
  • Differences in tax treatment caused by a life insurance policy's

Learning Objectives

  • Explain the customary income tax treatment given to life insurance policy withdrawals, loans, surrender proceeds and death benefits.
  • Explain how a life insurance contract's failure to meet the statutory definition of life insurance changes its income tax treatment of death benefits and cash values.
  • Explain how a life insurance contract's failure to meet the statutory definition of life insurance changes its income tax treatment of death benefits and cash values.
  • Discuss the income tax treatment given to life insurance policy death benefits when the life insurance policy has been transferred for a valuable consideration.
  • Compare the tax treatment of life insurance death benefits under a policy included in a qualified plan with the tax treatment of nonqualified life insurance death benefits.
  • Identify the types of life insurance exchanges that are tax-free under IRC §1035.
  • Define the terms "terminally-ill" and "chronically-ill" as used in the Health Insurance Portability and Accountability Act.
  • Describe the income tax treatment of accelerated death benefits, viatical settlements and life settlements

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (5 hours)

Program Prerequisites
None

Advance Preparation
None

">
 Chat — Books Support