Only distributions from a taxpayer's own IRA are includable
to determine whether a taxpayer has met the $100,000 limit.
Although the above contingency discussion centers on the three-year rule of IRC section 2035(d), the operation of the contingency provisions in the trust should be triggered by any circumstances that result in the insurance proceeds being includable
in the gross estate.
The value of any such benefit is not includable
in the insured's gross estate under IRC Section 2033 or under IRC Section 2042(2) because if the proceeds are life insurance (an issue the ruling did not decide) the insured would not have owned any incidents of ownership at his or her death.
Distributions in excess of expenses are includable
in gross income and may be subject to an additional 10% tax.
If life insurance proceeds are payable to the insured's estate, is their value includable
in his estate?
The court in Woodbury stated that the reimbursements were analogous to kickbacks and, as such, were includable
in the purchasers' gross income.
All other joint-and-survivorship property is fully includable
in the gross estate of the first owner to die, except to the extent that the decedent's estate can demonstrate that the survivor contributed to the purchase price.
However, an employee cannot reduce the amount that is includable
in his income by:
For example, health and accident premiums are not includable
in the FICA tax base if there is a "plan or system" of health benefits for employees and dependents generally, or a class of employees.
They have even established an audit team whose sole purpose is to analyze executive compensation and to determine the amount that should be includable
in the company's rate structure.
On the other hand, disability income payments received from a disability income policy paid for by an employer are fully includable
in gross income and taxable to the employee.
This quandary is known as income in respect of a decedent (IRD)--income to which the decedent was entitled, but due to his or her death was not includable
in his or her taxable income.
Any one of seven reasons can cause life insurance to be includable
in a decedent's gross estate.
The mere existence of a general power of appointment (as considered for federal estate tax purposes) will cause property subject to it to be includable
in a donee's estate.
Thus, for example, where a Code provision refers to a "loss" of the taxpayer from an activity, for purposes of the alternative minimum tax the existence of a loss is determined with regard to the items that are includable
and deductible for minimum tax, not regular tax purposes.