vertical privity. 1  The legal relationship between links in a productâs distribution chain. 2  The privity between a person who signs a contract containing a restrictive clause and the person acquiring the property that is so restricted.
The taxation of life insurance proceeds or endowment policy proceeds payable during the insured`s lifetime is governed by Code 72, the same section that governs the taxation of the payments received under annuity contracts.here the proceeds of an endowment or surrendered policy are paid during life in a lump sum, any excess of such proceeds over the cost of the policy is taxable income [I.R.C. 72(e); Reg. 1.72-11(d)]. The gain is considered ordinary income and not capital gain.
Remember though that sales of appreciated shares owned for one year or less are taxed at âordinary incomeâ rates, while stocks held for over a year are taxed at the long-term capital gains rate, which for most investors is lower than their income-tax rate.ne of the toughest calculations taxpayers have to make is figuring out how much they owe Uncle Sam for their investment income. Taxpayers generally have two options when calculating taxes owed after selling stock holdings, but thereâs more flexibility for those who take action before selling the shares.