loss in annuites
have new referral who put in 30k in a non-ira annuity and is now worth 20k.
He cashed in the annuity for 20k.
Is it correct that his accountant is putting on his tax return a 10k loss as if it were a mutual fund?
Thank you,
Douglas
have new referral who put in 30k in a non-ira annuity and is now worth 20k.
He cashed in the annuity for 20k.
Is it correct that his accountant is putting on his tax return a 10k loss as if it were a mutual fund?
Thank you,
Douglas
Permalink Submitted by Alan - IRA critic on Wed, 2017-03-01 20:36
That is incorrect. Mutual fund losses reduce capital gains when realized, or reduce ordinary income by up to 3,000 max. A loss on a NQ annuity that is surrendered is an ordinary income loss and potential misc itemized deduction subject to 2% of AGI floor.