ILLMAS Posted February 20, 2018 Report Share Posted February 20, 2018 If life insurance company uses your dividends to pay the policy annual premium and no 1099-div was issued so far, would this be considered a taxable event? Quote Link to comment Share on other sites More sharing options...
Randall Posted February 20, 2018 Report Share Posted February 20, 2018 Would they get a 1099-DIV anyway? This may just be 'interest' and inside buildup in the policy and he is using his policy cash value to pay premiums. Unless he owns stock in the insurance company and received actual dividends, then he would get a 1099-DIV. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted February 20, 2018 Report Share Posted February 20, 2018 1 hour ago, ILLMAS said: If life insurance company uses your dividends to pay the policy annual premium and no 1099-div was issued so far, would this be considered a taxable event? Those dividends won't create a taxable event until the policy's cash value exceeds the total of premiums paid over the life of the policy. 3 Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.