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.
the current federal tax rate on short term gains is identical to your income tax rate for long term gains the capital gains rate depends on your tax bracket for the 10 and 15 percent brackets there is no tax on long term gainsfor higher brackets the rate is 15 percent these rates may change after 2010 when tax cuts enacted by the bush administration are due to expire there is also a significant exemption on capital gain amounts for a principal residenceor long term gains the capital gains rate depends on your tax bracket for the 10 and 15 percent brackets there is no tax on long term gains for higher brackets the rate is 15 percent