Surrendering a non-qualified Annuity. Deduct Loss? - annuity loss
Hello --
I read a lot of information to support here and elsewhere, and I thank you for your advice as well.
In addition, he is very upset by the situation, we try to explain as best as possible. Has been recently, January 29, 2008, the $ 112,665.26 set in a non-qualified (* this money was already paid = $ 85,500.00 *) variable annuities. My cost basis, the real money was $ 85,500.00. Currently, November 20, 2008 was approximately $ 44,000.00 left.
If the market is constantly down, I think, to resign by the end of the year. If so, is the loss of $ 68,665.26 held steady or capital loss? I've explained on this link for the IRS, an ordinary loss, and I think probably fully depreciated. Link;
http://www.fool.com/personal-finance/tax ...
I really appreciate your help, help me, what must take place before end of 2008. The product is helping me to take care of the mother of my 84 years of age. I am 50 years old. I hope you will be punished not the case.
Please do not hesitate to contact me. He waited patiently for your response.
Thank you,
Cary
PS: As a courtesy, I thought you should know something. I had brain surgery as a child. I'm blind MCforthe # 58,059 blind
and hard enough. My Greastest asset is my life, dog, mother and wife. They are also good for me. God bless you.
Thursday, January 21, 2010
Annuity Loss Surrendering A Non-qualified Annuity. Deduct Loss?
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2 comments:
Here's the problem.
The IRS has a publication called) Here is how to losses and b), is here, where we use to calculate your tax return. IRS publications are also not in a position to discuss shipping.
So ... All items on the web make sense (which the IRS is accepted in the past) and collect knowledge about the tax treatment of similar and related issues, as well as the verbatim repetition of what some of the previous article said.
Approach 1 If money to earn income, the IRS taxes as ordinary income and subject to a 10% penalty on earnings if under 59.5. Wow, sounds like the IRS, as it deals with a Roth IRA. If the exchange of one annuity for another, is the basis for the calculation is not the shipping costs, which means that investment spending coordinate the implementation.
If it's a Roth, you drag the loss as a deduction on Schedule A. The investment spending differently, where the results of passive income from investments is also shown as a deduction on different Appendix A (which has no ROTH equivalent, but it is that the traditional IRA, if the fees paid with funds outside the IRA).
The IRS said the record that is with this approach and will continue no formal guidelines on this issue.
The disadvantage is that this section is from 2% to List A (reduces the amount of 2% of AGI) and is a complement for the new AMT purposes. If you do not usually show only the amount that exceeds the standard deduction would reduce your tax burden. Small losses tend to disappear with the tax savings with too little or none. Taxes on the Middle reduce your tax burden by your tax rate. Further losses can be taken to reduce the tax burden, because after all your AMT liability exceeds the tax liability from 1040 will and that if any of them is greater.
If your loss is so great, you have a negative income, you can not lead to the loss of forward or backward to another tax year. Bummer.
Method 2 () is very difficult on the Internet argue that, in the absence of explicit rules of the IRS, that t * may * be able toApplication Form or lease transaction of 4797, Appendix D. If you do
You can not name the sources who say the IRS, that's okay.
They ignore the inconsistent treatment of losses ROTH.
You need to ignore the fact that anyone with Annex A.
They ignore the business of "or business." Is this not a trade or business secrets, should not a form 4797 and can not maintain safe, it's for carry back a net operating loss / delay late (I'm sure), some try.
These people will agree with me that there is a capital loss, you will recall that you have not purchased to lose the rent money and then not giant, arguing that these "benefits" sufficient to justify the proclamation of the transaction on Form 4797 .
Losses on a Form 4797 is not up 2%, or AMT.
Again the load is shipped in Appendix A (which tends to small enough) to disappear at all.
The problem is not what is right. The purchase of an annuity to creatRetirement income and is not similar because a store owner or a rental property. Of course, everyone is initiated income, but the similarity stops there ....
His loss is the difference between their investments $ 85,500 and $ 44,000 and $ 41,500. The loss is treated as an ordinary loss.
It is not a punishment, the tax applies only to the result.
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