Irene's husband passed away this year.After his death, Irene received $250,000 of proceeds from life insurance on her husband, and she inherited her husband's stock portfolio, worth $750,000.What amount must Irene include in her gross income?

Question

Quizplus · Accepted Answer

Life insurance proceeds paid out because of the death of the insured person are not taxable and do not have to be reported as income. Similarly, inherited property, such as stocks, is not considered taxable income when received. Therefore, Irene does not have to include any of these amounts in her gross income.

Irene's Husband Passed Away This Year