Beverly Died During the Current Year

question 24

Essay

Beverly died during the current year. At the time of her death, her accrued salary and commissions totaled $3,000 and were paid to her husband. The employer also paid the husband $35,000 which represented an amount equal to Beverly's salary for the year prior to her death. The employer had a policy of making the salary payments to "help out the family in the time of its greatest need." Beverly's spouse collected her interest in the employer's qualified profit sharing plan amounting to $30,000. As beneficiary of his wife's life insurance policy, Beverly's spouse elected to collect the proceeds in installments. In the year of death, he collected $8,000 which included $1,500 interest income. Which of these items are subject to income tax for Beverly's spouse?

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Definitions:

Interact

To interact is to communicate or engage with others through verbal, non-verbal, or digital means, facilitating the exchange of information or ideas.

Winning Strategy

A plan or approach designed to achieve victory or success in a competition, conflict, or challenging situation.

No-Win Issues

Topics or challenges that cannot be satisfactorily resolved, often leading to outcomes that satisfy no party fully.

Fuzzy Positions

Vague or unclear stances on issues, often intentionally, to avoid alienating potential supporters.