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.

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.

Chapter 13 - Overview

Explain how gain or loss on the sale or exchange of property is ascertained for federal income tax purposes.