Are losses from insurance annuity surrender tax deductible

[hgtc]

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.

[qbteachmt]

Did you google:

are life insurance annuity losses tax deductible

[hgtc]

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?

[BobKamman · Accepted solution]

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."