Ask Experts Questions for FREE Help !
Ask
    ferchak48's Avatar
    ferchak48 Posts: 20, Reputation: 1
    New Member
     
    #1

    Nov 20, 2007, 05:58 AM
    Life insurance policy
    Will the insurance company deduct any taxes on a life insurance policy? Is the year end taxable?
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,305, Reputation: 7692
    Expert
     
    #2

    Nov 20, 2007, 06:39 AM
    What sort of payoff, is this a payoff of the interest and principal to the owner, or is it a death benefit.

    ** the death benefit is not normally taxable.
    ebaines's Avatar
    ebaines Posts: 12,132, Reputation: 1307
    Expert
     
    #3

    Nov 20, 2007, 06:52 AM
    If you are cashing out a policy that may have a gain (for example whole life or variable policy), any gain in the policy is taxable income. The insurance company will send you a 1099 that details the amount of the gain. The bad news is that if you have a loss, the amount of the loss is NOT deductible.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,784, Reputation: 846
    Senior Tax Expert
     
    #4

    Nov 20, 2007, 11:41 AM
    Ebaines analysis is accurate.

    If you are talking about a death benefit, NO income tax is due.

    There MAY be some estate tax considerations, but that is not likely.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Search for life insurance policy [ 9 Answers ]

How can I find if a life insurance policy exists on a recently deceased parent?

How to cash in a life insurance policy [ 6 Answers ]

I have a life insurance policy that is over 25 years old. I have the name of the insurance co. but I have no idea what the policy number is. Is there any way that I can locate the proper insurance co. without the policy number. Every time I type in the name of the insurance co. I get a list of all...

How do I find out whether my dad had an insurance policy? [ 3 Answers ]

How do I dind out whether my deceased dad had an insurance policy

Fiancee's ex-girlfriend is his alternate trustee on life insurance policy [ 1 Answers ]

Need advice! My fiancee's ex-girlfriend, who just so happens to be partner in a family law firm, is currently the alternate trustee on his life insurance policy. His mother is the trustee. I understand that their platonic friendship turned into an intimate one and they eventually became lovers....


View more questions Search