Life Ins policy surrendered.....

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  • AZ-Tax
    Senior Member
    • Feb 2008
    • 2604

    #1

    Life Ins policy surrendered.....

    Its my understanding that there would only be a gain if the total premiums paid in were less then the cash value at time of surrender.

    Assuming there was a gain, what tax document would the Insurer issue to the the TP?
  • S T
    Senior Member
    • Jun 2005
    • 5053

    #2
    I believe

    that the Life Insurance Companies report on a 1099R - haven't seen one in a while.

    Sandy

    Comment

    • BOB W
      Senior Member
      • Jun 2005
      • 4061

      #3
      The Life Insurance company will back out the cost of insurance and get to the investment side of the plan. This would be the same as an annuity, but without insurance to develop cost basis.
      Last edited by BOB W; 03-12-2010, 08:26 PM.
      This post is for discussion purposes only and should be verified with other sources before actual use.

      Many times I post additional info on the post, Click on "message board" for updated content.

      Comment

      • spencer
        Senior Member
        • Jan 2010
        • 115

        #4
        I have not

        cashed in my policy, but I get a 1099-R each year for dividends paid in excess of premium due.

        Comment

        • Burke
          Senior Member
          • Jan 2008
          • 7068

          #5
          You must have had this policy a very long time if that is happening.

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