Without getting into any specific formula for determining imputed income on group life insurance...can anyone comment on the logic behind it?
If I'm correct the first $50K of coverage is exempt and the formula applies to the portion of coverage above $50K. Is the goal just to tax the death benefit?
So if I were to carry some large face amount the government in essence is considering the payout taxable income even though I'm not dead and haven't received it?
If I'm correct the first $50K of coverage is exempt and the formula applies to the portion of coverage above $50K. Is the goal just to tax the death benefit?
So if I were to carry some large face amount the government in essence is considering the payout taxable income even though I'm not dead and haven't received it?
Imputed Income
