Losses on Non Qualified Annuities
If a person has a non qualified annuity and surrenders it and has a charge of say $5,000 can they use this as a loss on their tax returns?
Thank You
If a person has a non qualified annuity and surrenders it and has a charge of say $5,000 can they use this as a loss on their tax returns?
Thank You
Permalink Submitted by Alan Spross on Thu, 2007-09-27 22:40
Yes, if the net amount received is less than the investment in the contract, there is a potential misc itemized deduction subject to 2% of AGI. You must be able to itemize to use this deduction, as this is NOT considered a capital loss. For NQ annuities this applies per contract, whereas for IRA accounts all the accounts of a specific type (TIRA vrs Roth) must be closed in order to qualify for a deduction.