Client has an life insurance policy in a foreign country. And his former accountant has reported the income in his prior year tax returns.
Now we are calculating the income in 2018. He said the policy has increased in value of $1,000 in 2018. But there was premium payments of $700 made in 2018.
In this case, would the income to be recognized be $1,000 or $300 ($1,000 minus $700 premiums paid)?