I surrendered two insurance policies last year - one was a Whole Life policy and the other was a Variable Universal Life policy. The insurance company where I had the Whole Life policy sent me a 1099-R showing the gain on the policy, which I owe taxes on. The company where I had the Variable Universal policy did not send a 1099-R, because the surrender value was less than the cost basis (and hence no taxes due). My question is: am I allowed to report the loss on the Variable Universal policy? It seems unfair that I have to report gains on one of I'm not allowed to offset the loss on the other. TIA.