Annuity Cashed In

[S T]

T/P over 59.5, non qualified, not an IRA or rollover, cashed in an annuity, and suffered a $2,323 loss.

Not a variable annuity, a fixed annuity investment.

Where to deduct on the return,

Schedule D

2% schedule A
not 2% schedule A

I am looking at TB 4-23 and states "loss on the basis in a nonqualified refund annuity, subject to 2% of AGI, is this the correct method for this annuity.

Seems like it should be similar to early withdrawal penalties on a Bank CD.

Thanks,

Sandy

[veritas]

It appears

you found the correct answer in TTB.

I don't see a comparison to a cd. Income is deferred in an annuity unlike a cd.

[sea-tax]

you found the correct answer in TTB.

I don't see a comparison to a cd. Income is deferred in an annuity unlike a cd.

I have to agree with my Southern Neighbor, this is my understanding as well.