Bob G. wrote:

- quote -

*Probably* not for either income tax or estate tax purposes,
absent some very strange facts (there's always the
possibility of a transfer for value issue considering we
know very little about the transactions that got us to this
point, nor do we know that the policy actually named the
spouse as the beneficiary).

But normal, run of the mill life insurance death benefits
payable to an individual are excluded from income tax. And,
assuming the spouse is the "clear" beneficiary of the
policy, there would also likely not be any estate tax due on
it (I suppose some set of facts might eliminate the marital
deduction, but it would be *really* strange <grin> ).

--
Ed Zollars, CPA
Phoenix, Arizona

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"Bob G." <robert.granell[at]snet.net> writes:

- quote -

The death benefit is not taxable. If any interest is
included, that's taxable.

Phil Marti
Topeka, KS

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"Bob G." <robert.granell[at]snet.net> wrote

- quote -

Not under the income tax.

The policy amount may be part of the decedents taxable
estate depending on ownership of the policy.

--
Paul A. Thomas, CPA
taxman at negia.net

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"Bob G." <robert.granell[at]snet.net> wrote:

- quote -

In general there's no income tax on a life insurance death
benefit. It is generally subject to estate tax, however.

In either case more information is required. Who purchased
the policy? Who is the current owner? Did ownership ever
change, and if so how and when? With answers to these
questions, you can be given a more definitive response.

Stu

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Bob G. <robert.granell[at]snet.net> wrote:

- quote -

Death benefits are not taxable, assuming spouse did
not purchase an existing policy to collect the benefits.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Is money collected as the beneficiciary of a life insurance policy taxable?
Surviving taxpayer is a spouse.

Thanks

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->