How do you account for a Whole Life Policy cashout with taxes?

Posted by admin
schmatt asked:


My wife and I cashed out her whole life policy last year. It ended up being a loss (now there’s a big surprise). How do I account for it in my taxes. Would it be a normal investment in the schedule D? Are the entire premium payments considered for the cost basis or are they split out based on some going towards the insurance and some going towards the savings plan?

TERRELL
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This entry was posted on Saturday, January 31st, 2009 at 1:27 am and is filed under United States. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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One Response to “How do you account for a Whole Life Policy cashout with taxes?”

  1. ROBERTO Says:
    February 1st, 2009 at 5:52 pm

    RAY

    Life insurance is not considered an investment. You have no loss or gain.