Life insurance premium and health insurance premium

Assignment Help Financial Management

Reference no: EM131930303

1. Which of the following gifts is a taxable gift ?

a- gift from wife to husband

b- you dad pays your medical bill to the hospital where you stay for 1 week

c- you Mom buys your brand new BMW ACTIVEHYBRID X6, which is worth more than 40,000 as your birthday gift

d- you brother pay your annuity premium which is $ 2000 a year.

2. Which following about federal estate tax and gift tax is Not correct?

a- gift tax is paid by the gift receiver

b- federal estate tax is due 9- month after the death

c- the property leaving to the spouse is not subject to federal estate tax

d- if all of the above is correct. Please choose D.

3. U.S life and health insurance are taxed by the federal and state governments. Federal taxation is based on insurers’ net income. In MN, the state primarily taxes insurers on premium income.

a- True

b- False

4. In Minnesota the premium tax rate is same for life insurance premium and health insurance premium

a- True

b- False

5. In federal income tax estimation , which of the following is not an allowable seduction?

a- General expenses

b- Contributions to employees’ benefit

c- Increase in policy reserves

d- Dividends distributed to shareholder

Reference no: EM131930303

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