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You have life insurance from a deceased parent and didn claim on taxes because told didn have to then was audited and had to pay. do you have to pay tax on life insurance was the audit correct?

April 26, 2017audited claim deceased Life Insurance parent pay taxes

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You have life insurance from a deceased parent and didn claim on taxes because told didn have to then was audited and had to pay. do you have to pay tax on life insurance was the audit correct?

1 Answer

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Posted

However, if the policy was transferred to you for valuable consideration, the exclusion for the proceeds is limited to the sum of the consideration you paid, additional premiums you paid, and certain other amounts. There are some exceptions to this rule.