cpabsd Posted March 30, 2010 Report Share Posted March 30, 2010 Taxpayer cashed in whole life insurance policy. Total investment $22176. Amount received after cashing in policy - $16522. Is there any means by which to deduct the loss? If the numbers were reversed, the taxpayer would be expected to pay taxes on the income. Thanks for any guidance. Bonnie Quote Link to comment Share on other sites More sharing options...
OldJack Posted March 30, 2010 Report Share Posted March 30, 2010 >> If the numbers were reversed, the taxpayer would be expected to pay taxes on the income. << Generally proceeds from a life insurance policy are not taxable except in a case where a portion represents interest income. A decrease in value represents payment of premiums due/paid and not a tax loss. Quote Link to comment Share on other sites More sharing options...
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