IRC Section 1035 Allows the Owner of an Annuity Contract

question 8

Multiple Choice

IRC Section 1035 allows the owner of an annuity contract to exchange an existing annuity contract for a new one,without:

• A)Paying long-term capital gains tax on the investment gains in the current contract.
• B)Paying ordinary income tax on the investment basis in the current contract.
• C)Paying ordinary income tax on the investment gains in the current contract.
• D)Paying short-term capital gains tax on the investment gains in the current contract.

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