income on the contract
Defined in 1 dictionary — U.S. Code
United States Code
26 U.S.C. § 72 — for purposes of this section (18 versions over time)
For purposes of paragraph (1), the term “income on the contract” means, with respect to any taxable year of the policyholder, the excess of—
(i) the sum of the net surrender value of the contract as of the close of the taxable year plus all distributions under the contract received during the taxable year or any prior taxable year, reduced by
(ii) the sum of the amount of net premiums under the contract for the taxable year and prior taxable years and amounts includible in gross income for prior taxable years with respect to such contract under this subsection.
26 U.S.C. § 7702 — for purposes of this section
For purposes of this paragraph, the term “income on the contract” means, with respect to any taxable year of the policyholder, the excess of—
(i) the sum of—
(I) the increase in the net surrender value of the contract during the taxable year, and
(II) the cost of life insurance protection provided under the contract during the taxable year, over
(ii) the premiums paid (as defined in subsection (f)(1)) under the contract during the taxable year.