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What amount is tyler required to include in his gross income

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Leland pays premiums of $27,250 for an insurance policy in the face amount of $136,250 upon the life of Caleb and subsequently transfers the policy to Tyler for $40,875. Over the years, Tyler pays subsequent premiums of $8,175 on the policy. Upon Caleb's death, Tyler receives the proceeds of $136,250.

As a result, what amount is Tyler required to include in his gross income?

Reference no: EM132386242

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