Gifts And inheritance
Gifts And Inheritance
Life nsurance proceeds Paid by reason of death, generally non taxable Policy matures or is surrendered, the excess of proceeds over the premiums paid is taxable to recipient Dividends on lie insurance and endowment policies are normally non taxable because they are considered return of premiums paid
Life Insurance Proceeds • Paid by reason of death, generally nontaxable • Policy matures or is surrendered, the excess of proceeds over the premiums paid is taxable to recipient • Dividends on life insurance and endowment policies are normally nontaxable because they are considered return of premiums paid
Adoption Expenses Adoption credit -Congress provides tax benefits for qualified adoption expenses in the form of tax credits or an exclusion for amounts paid pursuant to an adoption assistance plan created by an employer Employee is allowed a $5,000 per child exclusion($6,000 for a special needs child)
Adoption Expenses • Adoption credit - Congress provides tax benefits for qualified adoption expenses in the form of tax credits or an exclusion for amounts paid pursuant to an adoption assistance plan created by an employer • Employee is allowed a $5,000 per child exclusion ( $6,000 for a special needs child)