"sca" <viaggia_molto2003[at]yahoo.com> wrote:

- quote -

Was the original annuity funded with qualified or
non-qualified money?

I am concerned that you switched one annuity for another. I
have done this with my clients, but only after a careful
review of the optional riders available on the newer
contracts. Switching simply because your annuity lost money
after the three worst years in the market may not have been
the good move. Again, this depends on what the details of
your old annuity were and what the details of the new one
are.

Would you care to give us some details like:
Name of the annuity company
Name of the company that sold you the annuity
Optional annuity riders

Did you buy the new annuity from the same sales person that
sold you the old annuity?

Good luck,
Gene E. Utterback, EA

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In 2000 we bought a variable annuity with six mutual funds
in it. In 2003 we surrendered the annuity in order to switch
to another variable annuity with another company. At the
surrender our cash loss was substantial from the original
investment.

1. Can I deduct this substantial loss on my tax return?
What forms would I use?
2. Also, I was not 59 1/2 at the time of surrender. Am I
going to be taxed at 10 percent?

Any help would be appreciated.

--
If you want to make an apple pie from scratch, you must
first create the universe. - Carl Sagan

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