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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.
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Did you google:
are life insurance annuity losses tax deductible
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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?
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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."
