Journal article
Simplified annuity rules
Strategic finance (Montvale, N.J.), Vol.78(10)
01 Apr 1997
Abstract
Section 72 provides that the taxable portion of an annuity distribution is included in gross income and taxed as ordinary income. For an annuitant who has no basis on the annuity contract, there is no problem; the entire distribution amount is includable annually in gross income. The difficulty arises for the annuitant who has a basis in an annuity contract. More specifically, the distribution amount must be allocated between the taxable and taxable portions. One method of calculating the exclusion amount is the annuity table exclusion method. The method is quite complicated and confusing. Section 1403 of the Small Business Job Protection Act of 1996 provides relief to this set of procedures with the simplified method.
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Details
- Title
- Simplified annuity rules
- Creators
- Anthony Curatola
- Publication Details
- Strategic finance (Montvale, N.J.), Vol.78(10)
- Publisher
- Institute of Management Accountants
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Accounting
- Identifiers
- 991020532007104721