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Spread interest income over three years

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    Spread interest income over three years

    I have a client who called and said they have an Executive Insurance Policy that has earned interest of $93,000. Client was told they could spread this income over three years. Does anyone know of any type of income that can be spread over three years?

    #2
    My approach to insurance is that the only true life insurance policy is term life, and everything else is a complex combination of products for which you'll need to know the details before answering any tax questions.

    In this case, there may be some annuity rules that apply. Get the details on the policy first, find out who said it could be spread over three years, find out the reason, preferably directly from that person or their company.

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      #3
      Thanks

      I actually finally was able to get confirmation that this distribution would be considered a capital gain. So, if client takes the entire distribution, it is going to be long term gain.

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        #4
        You got it in writing - correct?
        "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

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          #5
          In other words....

          Originally posted by JohnH View Post
          You got it in writing - correct?
          ....show me the 1099 !!

          And, as has now been corrected, I have never heard of anything where (especially) interest income could be spread over multiple years!


          FE

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