NINJA REG Notes: Ind. Taxes Clarification Needed

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  • April 4, 2017 at 1:23 pm #1528365
    famh110
    Participant

    NINJA Question –

    Hello…I going through the individual taxation portion of the Reg notes and have one question related to it. There is a heading for Tax-free Dividend Income and it includes the following:
    Some stocks, S-Corp, and Life Insurance (it’s on page 29).
    How is it that Life Insurance is being regarded as Dividend Income. Please explain!!

    Thanks so much!!

    AUD - 75
    BEC - 77
    FAR - NINJA in Training
    REG - NINJA in Training
    "The best preparation for tomorrow is doing your best today". (H Jackson Brown, Jr.)
Viewing 5 replies - 1 through 5 (of 5 total)
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  • April 4, 2017 at 1:40 pm #1528381
    krstnam
    Participant

    Some whole life plans have dividends. I don't think it has to be whole life but those are the plans that sometimes have that feature.

    I'm going to be the person who says "I finished even though..." not the person who says "I didn't finish because..."

    B - 77, 76

    A - 57, 64, 72, 76!

    R - 78, 72, 78!!! DONE

    F - 54, 73, 71, 64, 69, 76!

    April 4, 2017 at 1:51 pm #1528390
    famh110
    Participant

    @krstnam…thanks for explaining that!! i never knew that life insurance paid back dividends…i guess the word dividend threw me off.
    found a helpful link on this topic if anyone else is interested: https://www.dfs.ny.gov/consumer/que_top10/pr_que_life_who.htm

    AUD - 75
    BEC - 77
    FAR - NINJA in Training
    REG - NINJA in Training
    "The best preparation for tomorrow is doing your best today". (H Jackson Brown, Jr.)
    April 4, 2017 at 2:56 pm #1528423
    krstnam
    Participant

    Anytime. I only knew this because when I was in college, a guy I was dating was paying for a whole life plan and got dividends and I had no idea that life insurances offered payments before you died. 🙂

    I'm going to be the person who says "I finished even though..." not the person who says "I didn't finish because..."

    B - 77, 76

    A - 57, 64, 72, 76!

    R - 78, 72, 78!!! DONE

    F - 54, 73, 71, 64, 69, 76!

    April 4, 2017 at 3:14 pm #1528431
    famh110
    Participant

    wow! you have a pretty interesting story there. this reminds me of a saying that goes like: the past is where you learned the lesson. the future is where you apply the lesson. (unknown) 🙂

    AUD - 75
    BEC - 77
    FAR - NINJA in Training
    REG - NINJA in Training
    "The best preparation for tomorrow is doing your best today". (H Jackson Brown, Jr.)
    April 4, 2017 at 3:17 pm #1528435
    famh110
    Participant

    between, can you share your experience for studying for regulation and how you managed to pass? thanks

    AUD - 75
    BEC - 77
    FAR - NINJA in Training
    REG - NINJA in Training
    "The best preparation for tomorrow is doing your best today". (H Jackson Brown, Jr.)
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