Are Immediate Annuity Payments Taxable?
Annuities are contracts in which an investor sends money to an insurance company, in exchange for the promise of a stream of income payments either starting immediately or at a later date. When the owner chooses to begin the stream of payments, or “annuitize” the annuity, he can choose to spread the payments over a certain number of years (period-certain) for as long as he lives (life only); for the longer of his lifetime or a specified number of years (life with period-certain); or for the longer of two lifetimes (joint life expectancy). This concept is key to analyzing the taxation of annuity benefits, because taxes are calculated based in part on the number of years that benefits are expected to be payable. Last Updated: 29/09/2010 08:42:51 • The Effects of Lowering Taxes Last Updated: 29/09/2010 07:06:51 • Real Estate Tax Advantages The primary benefits of investment real estate are quite significant in that they combine regular cash flow with long-term growth through appreciation
