Are losses from insurance annuity surrender tax deductible

Forum|Forum|4 years ago
April 4, 2022
1 reply
11 views

taxpayer surrendered his life insurance annuity with losses. Are these losses tax deductible?

If yes, capital losses? Or under Sch A - misc deudctions subject to 2% AGI?

How about tax treatment for CA?

Thanks.

Lacerte Tax

This topic has been closed for replies.

Best answer by BobKamman

I don't know what a life insurance annuity is. Just an annuity that, like most of them, is sold by a company that also sells life insurance? Or an annuity that also has a life insurance "kicker" that pays more than its cash value if the owner dies, so the "loss" is more than likely due to the life-insurance premium included in the price? Those used to be popular. Haven't seen any lately. Agents make more money selling annuities with a long-term-care "kicker."

qbteachmt

Level 15

Did you google:

are life insurance annuity losses tax deductible

Don't yell at us; we're volunteers

H

hgtcAuthor

Level 5

Yes, some article said "misc deduction - 2%". Some said no. Since for federal, they suspend misc deduction. so, no tax issue. But, how about CA? I could not find answers. Can you help?

BobKammanAnswer

Level 15

I don't know what a life insurance annuity is. Just an annuity that, like most of them, is sold by a company that also sells life insurance? Or an annuity that also has a life insurance "kicker" that pays more than its cash value if the owner dies, so the "loss" is more than likely due to the life-insurance premium included in the price? Those used to be popular. Haven't seen any lately. Agents make more money selling annuities with a long-term-care "kicker."

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