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.
When you sell rental property, profits, or capital gains, and losses are categorized as either short-term or long-term. Short-term profits are taxed at the same rate as ordinary income.Long-term capital gains are taxed at between 5 and 15 percent, depending on your tax bracket.f you are going to buy another property after you sell, consider doing a 1031 exchange. The benefits of owning real estate are many: leverage, appreciation, cash flow and tax write-offs. Although prices can and do sometimes go down, historical long-term appreciation rates have compared favorably with stock gains.