Interest was recieved monthly and claimed on taxes. The value of the annuity is less then what they purchased it for.
If you bought an annuity for 100K and decided to close it are their tax consequences?
20
Mar
Available Services
-
Upcoming
- Amending tax return to report direct rollover from annuity to IRA?
- how to calculate rate of return of annuity?
- The Dawes Act attempted to help Native Americans by ….?
- How to Get RICH Selling Insurance and Annuities to Women
- Business Finance help?
- Can you get a little bit of money out of a structred settlement or do you have to get the lump sum?
- How will a 1099-R affect my taxes?
- What is a good mutual fund to start with?
- Am I able to qualify for a deductible IRA if the only retirement plan my company offers is a 401K?
- How do you figure annuities with different interest periods and payment periods?
- Annuity payment help?
- Sterling Silver Hand Painted Teal Ovarian Cancer or Missing Children Support Ribbon Buy to Donate
- When should I start withdrawing funds from my TSP account?
- Move 401K to IRA a good move?
- how to find interest rate using annuity formula?
Visitor Stat
Michael R
March 20, 2010 at 8:52 pm
If you paid all your income taxes on the interest then all your interest is not taxable when you with drawl, thanks to the no double taxation laws.
Assuming you do not owe taxes on the principal amount before you put the funds into the annuity then you will not owe any when it comes out.
ninasgramma
March 20, 2010 at 9:02 pm
If you surrender your annuity for less than its basis, the loss can usually be deducted on Schedule A as a miscellaneous deduction subject to 2% of your AGI.
You have to be completely surrendering your annuity, and the annuity could not have come from another sheltered investment.
Greg M
March 20, 2010 at 9:29 pm
As long as it is not qualified (pre-tax) money you should have no tax consequences.