Annuity taxation timing: film artists include only annuity instalments when policy meets specified contractual conditions. Where a film artist on the cash system is remunerated by annuity policy, only the annuity instalments actually paid in a year are includible in that year's total income if the policy and agreement satisfy specified features (annual payment for a term, annuitant status, irrevocable assignment or power to collect, non-commutability and absence of surrender value, and non-assignability of annuity/interest). Absent those features, the amount paid by the producer to purchase the policy is includible in the year of purchase; cases must be examined against these conditions and the instruction applies to film artists only.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Annuity taxation timing: film artists include only annuity instalments when policy meets specified contractual conditions.
Where a film artist on the cash system is remunerated by annuity policy, only the annuity instalments actually paid in a year are includible in that year's total income if the policy and agreement satisfy specified features (annual payment for a term, annuitant status, irrevocable assignment or power to collect, non-commutability and absence of surrender value, and non-assignability of annuity/interest). Absent those features, the amount paid by the producer to purchase the policy is includible in the year of purchase; cases must be examined against these conditions and the instruction applies to film artists only.
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