Loss Deductible on Variable Annuity?

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  • Mr1040
    Junior Member
    • Jan 2006
    • 6

    #1

    Loss Deductible on Variable Annuity?

    I have a client who purchased a Flexible Variable Annuity in January 2000 for $40,000.00.
    Cashed it in August 2005 for $17,203.00. Where is the loss deducted? Sched D?
    Can't find anything anywhere on how to report the loss. I know it's a busy time for all but would appreciate hearing from anyone who knows. Thanks in advance!

    Mr 1040
  • veritas
    Senior Member
    • Dec 2005
    • 3290

    #2
    Unrecovered investment in an annuity is deducted as a misc itemized deduction not subject to 2% limitation.

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