Harlan Lunsford <lunstax[at]bellsouth.net> wrote:
- quote -

Thanks for responding,

The form says;
Zero-basis-pol
box 1 Gross Distribution 17,000 (and change)
box 2A Taxable amount 17,000
box 2B Total distribution
box 7 distribution code 7

Total Gross Distributions 17,000

Mike

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Mike wrote:

- quote -

I imagine you saw that 17000 in block one on the form.
But what about block two; what's' in it?

Cheer$,
Harlan Lunsford, EA n LA

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I need help with a 1099R from a life insurance policy. Many
years ago I took out a whole life policy and I could only
afford to pay the premium once. Every year my agent would
take out a loan against the policy to pay the premium. I
would pay the interest on the loan every year. Last year I
let the policy lapse. I received a 1099R for almost
$17,000. I called my agent and he said to ignore the 1099.
I'm afraid if I do I will get hit eventually. Turbo Tax is
treating it as an annuity income. My thoughts are; Even
though my insurance company advanced me the money on paper,
if I died they were going to deduct it from the payoff, I
never realized any gain, Even if I have to pay I should only
have to pay the amount that was loaned in each year I
received it? The 1099 says it was a "normal distribution".
What's normal mean? On the back of the 1099 it says that
there should be a code L if I have to claim it. I don't see
anywhere a code L. Do I have to report it on both Federal
and State forms? Any response will be most appreciated.
Thanks

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