HS 321 Audio: Income Taxation 13th Edition

Chapter 16 - Overview

Describe the extent to which life insurance death benefits may be excluded from gross income, and explain how life insurance living benefits are treated for income tax purposes.

Explain the income tax treatment of disability income payments, benefits payable from medical expense coverages, and premiums paid for both personal and business life and health insurance.

Explain the tax consequences of life insurance with respect to transfers for value, lack of insurable interest, corporate distributions, charitable contributions, separation and divorce, additional compensation, and split-dollar arrangements.

Explain the income tax restrictions on certain amounts paid in connection with insurance contracts.

Chapter 17 - Overview

Explain what determines whether a life insurance policy is classified as a modified endowment contract (MEC).

Describe the characteristics of the corporate form of business, and explain its advantages and disadvantages.

Explain the requirements for the formation of an S corporation, and describe the advantages and disadvantages of being taxed as an S corporation.

Describe the requirements for incorporating a business under the nonrecognition provisions of the Code, and explain the respective roles of debt and equity in the corporate structure.