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.
Your capital gains are taxed as regular income if you held the property for less than one year or as long-term capital gains if you held it for more than one year. For the 2012 tax year, the IRS taxes long-term gains at 15 percent, and California taxes them as regular income.f you sold the property at a profit, you will have to pay 25 percent federal depreciation recapture tax and Callifornia state income tax on the total accumulated depreciation.