Question

A taxpayer may exclude which of the following from their gross income?

A. an allocation of income from a business structured as a partnership, based on the taxpayers percentage of ownership.

B. dividend income from a mutual fund investment.

C. gain from the sale of rental property.

D. life insurance if paid by reason of death of the insured​

Answer 1

D. life insurance if paid by reason of death of the insured

Step-by-step explanation:

You want to know which of business income, dividend income, rental property sale proceeds, or life insurance can be excluded from gross income.

Life insurance

The death benefit paid by a life insurance policy is not taxable and may be excluded from gross income. Any interest it may have earned is taxable and should be reported.

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