Both the taxpayer’s aunt and brother died unexpectedly this year. The taxpayer accepts his brother’s $200,000 life insurance policy proceeds as a lump sum and elects to receive aunt’s $300,000 policy in 24 installments of $15,000 each. If the taxpayer receives the $200,000 in a lump sum and only four of the 24 payments from the $300,000 in the current year, what amount, if any, is taxable this year?
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