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#5
02-05-2004, 04:09 AM
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 Re: Reporting Insurance Policy Capital Gain? A.G. Kalman wrote: - quote - > William Brenner wrote:
That should have said "check wasn't delayed".> > A G Kalman wrote, in part: > > > "I can't figure out why the insurance company > > > put those words on the 1099-R. If there was > > > some part that could be treated as capital > > > gain they would know it and report it on the > > > form." > > As I read box 3, all of the "Taxable amount" in Box 2a is > > (as stated in box 3) "eligible for capital gain election". > > > My questions remain: > > How do I report this on my tax return? > > Which capital gains rate applies? > Assuming you owned the policy more than one year and > assuming the check was delayed for 7 months, you have a post > 5/5/03 long-term capital gain (5% or 15%). -- Alan http://taxtopics.net << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#4
02-04-2004, 02:54 AM
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| Re: Reporting Insurance Policy Capital Gain? William Brenner wrote: - quote - > A G Kalman wrote, in part:
Assuming you owned the policy more than one year and> > "I can't figure out why the insurance company > > put those words on the 1099-R. If there was > > some part that could be treated as capital > > gain they would know it and report it on the > > form." > As I read box 3, all of the "Taxable amount" in Box 2a is > (as stated in box 3) "eligible for capital gain election". > My questions remain: > How do I report this on my tax return? > Which capital gains rate applies? assuming the check was delayed for 7 months, you have a post 5/5/03 long-term capital gain (5% or 15%). -- Alan http://taxtopics.net << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#3
02-03-2004, 12:52 AM
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| Re: Reporting Insurance Policy Capital Gain? A G Kalman wrote, in part: - quote - > "I can't figure out why the insurance company
As I read box 3, all of the "Taxable amount" in Box 2a is> put those words on the 1099-R. If there was > some part that could be treated as capital > gain they would know it and report it on the > form." (as stated in box 3) "eligible for capital gain election". My questions remain: How do I report this on my tax return? Which capital gains rate applies? Thank you for your help. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#2
02-01-2004, 11:45 PM
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| Re: Reporting Insurance Policy Capital Gain? A.G. Kalman wrote: - quote - > Arthur Kamlet wrote:
The more I think about this the more I think it is no> > William Brenner <wjbjr[at]webtv.net> wrote: > > > In December, I received a check from a life insurance > > > company upon the maturation of an endowment policy purchased > > > many years ago. > > > > > If it matters, I was the owner of the policy and premiums > > > were paid by policy dividends for many years. > > > > > A 1099-R shows the "Taxable amount" in box 2a; and states in > > > box 3: "Amount in Box 2a eligible for capital gain > > > election". > > > > > The questions are: > > > 1. Does this qualify for the cut rate long term capital > > > gains tax? > > > 2. How does one enter this on Schedule D? (Or does it > > > go elsewhere?) > > If you were born before January 2 1936 and took a lump-sum > > distribution and elected lump-sum distribution tax treatment > > then this box comes into play. > The 10 year averaging for lump-sum distributions applies to > qualified employer plans. An endowment contract that > matures would fail that test. > I can't figure out why the insurance company put those words > on the 1099-R. If there was some part that could be treated > as capital gain they would know it and report it on the > form. different than the disposition of any other investment property. I think it is reasonable to treat it as such on the Schedule D Part II. I would use the date you first bought the contract as the purchase date and the date of the payment as the sales date. I would describe it as Disposition of Endowment Contract. -- Alan http://taxtopics.net << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
01-30-2004, 08:38 PM
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| Re: Reporting Insurance Policy Capital Gain? Arthur Kamlet wrote: - quote - > William Brenner <wjbjr[at]webtv.net> wrote:
The 10 year averaging for lump-sum distributions applies to> > In December, I received a check from a life insurance > > company upon the maturation of an endowment policy purchased > > many years ago. > > > If it matters, I was the owner of the policy and premiums > > were paid by policy dividends for many years. > > > A 1099-R shows the "Taxable amount" in box 2a; and states in > > box 3: "Amount in Box 2a eligible for capital gain > > election". > > > The questions are: > > 1. Does this qualify for the cut rate long term capital > > gains tax? > > 2. How does one enter this on Schedule D? (Or does it > > go elsewhere?) > If you were born before January 2 1936 and took a lump-sum > distribution and elected lump-sum distribution tax treatment > then this box comes into play. qualified employer plans. An endowment contract that matures would fail that test. I can't figure out why the insurance company put those words on the 1099-R. If there was some part that could be treated as capital gain they would know it and report it on the form. -- Alan http://taxtopics.net << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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01-28-2004, 09:55 PM
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| Re: Reporting Insurance Policy Capital Gain? William Brenner <wjbjr[at]webtv.net> wrote: - quote - > In December, I received a check from a life insurance
If you were born before January 2 1936 and took a lump-sum> company upon the maturation of an endowment policy purchased > many years ago. > If it matters, I was the owner of the policy and premiums > were paid by policy dividends for many years. > A 1099-R shows the "Taxable amount" in box 2a; and states in > box 3: "Amount in Box 2a eligible for capital gain > election". > The questions are: > 1. Does this qualify for the cut rate long term capital > gains tax? > 2. How does one enter this on Schedule D? (Or does it > go elsewhere?) distribution and elected lump-sum distribution tax treatment then this box comes into play. __ Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
01-27-2004, 10:52 PM
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| Reporting Insurance Policy Capital Gain? In December, I received a check from a life insurance company upon the maturation of an endowment policy purchased many years ago. If it matters, I was the owner of the policy and premiums were paid by policy dividends for many years. A 1099-R shows the "Taxable amount" in box 2a; and states in box 3: "Amount in Box 2a eligible for capital gain election". The questions are: 1. Does this qualify for the cut rate long term capital gains tax? 2. How does one enter this on Schedule D? (Or does it go elsewhere?) Thank you for your help. Bill << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| capital, gain, insurance, policy, reporting |
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