We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
IRS Rules on Surrenders, Sales of Life Insurance Policies.
- Authors
Commito, Thomas F.
- Abstract
The article presents revenue rulings from the U.S. Internal Revenue Service in response to tax liability questions raised by U.S. Senator Herbert Kohl with regard to the sale of life insurance policies to life settlement companies. The rulings explain the tax consequences of surrendering and selling such policies. Three different scenarios are presented and the rulings apply the relevant parts of the tax code to arrive at the tax liability for each. Questions that might be asked about such things as ordinary income, tax basis, and the cost of insurance are also raised and answered for each scenario.
- Subjects
UNITED States; REVENUE rulings; TAX laws; LIFE insurance policies; INSURANCE policies; SELLING life insurance; UNITED States. Internal Revenue Service; TAXATION
- Publication
Journal of Financial Service Professionals, 2009, Vol 63, Issue 6, p9
- ISSN
1537-1816
- Publication type
Article