View Full Version : Insurance policy surrender cash value taxable income?
kalpadaru
04-20-2008, 05:31 PM
Upon surrendering a paid-up insurance policy for cash, this amount is reported as income to the IRS by the insurance company. Is there any legal way to avoid/reduce/eliminate these taxes, especially if the payee is a senior citizen over 65?
Kalpadaru
knowledgeable
04-20-2008, 08:18 PM
... the exact type of policy and the investments and your age, yes you do have a chance of not having to pay taxes on the en-cashing of this policy.
In addition, another variable is the total income for the person in that year.
You're better of working with a senior CPA.
Good luck.
kalpadaru
04-21-2008, 02:19 AM
... the exact type of policy and the investments and your age, yes you do have a chance of not having to pay taxes on the en-cashing of this policy.
In addition, another variable is the total income for the person in that year.
You're better of working with a senior CPA.
Good luck.
Thanks.
Kalpadaru