2006-12-04 02:17:08 · 4 answers · asked by ironworker 1 in Business & Finance ➔ Taxes ➔ Canada
On "life insurance" proceeds....answer is NO, THESE ARE NOT TAXABLE. If you invest this money, only the earnings FROM it will be taxed and not the principal.
2006-12-04 05:31:56 · answer #1 · answered by Tiberius 4 · 0⤊ 0⤋
Dag -- For Canada, I don't know. I originally responded with US Tax code.
----- Original Response Follows ----
Generally, no.
Internal Revenue Code ss- 101(a)
(a) Proceeds of life insurance contracts payable by reason of death
(1) General rule
Except as otherwise provided in paragraph (2), subsection (d), and subsection (f), gross income does not include amounts received (whether in a single sum or otherwise) under a life insurance contract, if such amounts are paid by reason of the death of the insured.
2006-12-04 12:23:18 · answer #2 · answered by Skelebone 4 · 0⤊ 0⤋
No. Its non-taxable.
2006-12-04 10:30:18 · answer #3 · answered by Joe K 6 · 0⤊ 0⤋
I think so..YES
2006-12-04 10:18:20 · answer #4 · answered by Eraser 1 · 0⤊ 1⤋