Brew1 wrote:
- quote -

and his/her broker. If the client asked the broker to exchange
the annuities and the broker sold and purchased new ones, then
the client "may" have legal recourse against the broker.

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On Oct 1, 10:16*pm, Alan <sfcnm-...[at]yahoo.com> wrote:
- quote -

the transactions
as per a 1035 exchange, rather than just an awareness it was possible
for the exchange(s)
to be tax-free. As Harlan hinted, he may have been more aware of his
commission.

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Arthur Kamlet wrote:
- quote -

like kind exchange under IRC Section 1035, not 1031. One of the
many requirements to make this happen is that the exchange must
take place between the two insurance companies.

Complete details on 1035 exchanges can be found at:
http://www.immediateannuities.com/li...5_exchange.htm

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Brew1 wrote:
- quote -

therefore reported correctly, the salesman wouldn't have gotten a
commission, if you get my drift.

ChEAr$,
Harlan Lunsford, EA n LA

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In article <69c0ff6f-0891-4d87-a81c-c828aabe2b21[at]m74g2000hsh.googlegroups.com> ,
Brew1 <brew.one[at]gmail.com> wrote:
- quote -


But if these are annuities, annuities would not seem to qualify for
like-kind exchanges. Pub 544, for example, rules out like-kind
exchanges for nontangible nondepreciable personal property.
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Oct 1, 4:03*pm, kam...[at]panix.com (Arthur Kamlet) wrote:
- quote -

code (I should know better than rely on
my memory).

There is no possibility of a rollover in this case--the original
annuities were purchased with
non-retirement funds.

The broker has been unable (so far) to correct the problem. Without
new 1099-R's, it would come down
to qualifying as a like-kind exchange. I don't think it does,
although I guess it might depend
on an interpretation of "an integrated transaction"; to quote the IRS:

to qualify as a Section 1031 exchange, a deferred exchange must be
distinguished from the case of a
taxpayer simply selling one property and using the proceeds to
purchase another property (which is a
taxable transaction). Rather, in a deferred exchange, the disposition
of the relinquished property and
acquisition of the replacement property must be mutually dependent
parts of an integrated transaction
constituting an exchange of property. Taxpayers engaging in deferred
exchanges generally use
exchange facilitators under exchange agreements pursuant to rules
provided in the Income Tax Regulations.

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In article <iuQEk.42533$rD2.36487[at]bignews4.bellsouth.net> ,
Paul Thomas, CPA <paulthomascpapc[at]bellsouth.net> wrote:
- quote -


And if this is a tax free annuity exchange that should have been
reported as code 6, IRS Pub 575 Page 18 says this code 6 1099 does
not even have to be reported on the 1040.


A good reason to get it corrected.


Otherwise I'd report it as a rollover, writing Rollover to the
left of line 16 and not adding any amount to box 16b.
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

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"Brew1" <brew.one[at]gmail.com> wrote:

- quote -

Quit obsessing about what's on the 1099-R's and figure out whether it was a
taxable event or not. That will guide your return prep, not what's on the
1099-R's.

--
Phil Marti
Clarksburg, MD

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"Brew1" <brew.one[at]gmail.com> wrote
- quote -





I think "6" is a tax free exchange.


Brokers screw up. Clients don't here everything that applies.

Trace it back to the broker to see what his or her records show the client
wanted, then see if the broker can fix the problem (if indeed they need to
fix it).





--
Paul A. Thomas, CPA
Watkinsville, Georgia

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broker sold two annuities for my client and bought another one with
proceeds.
The 1099-R's are not coded "3" (like-kind exchange), they are coded
"7" with
a fair amount of taxable income. Client is not happy with me, as her
broker
assured her that only what was distributed to her would be taxed.
These annuities
were not inside a retirement account and the only way I see of
avoiding tax is to
have the 1099-R's re-issued, and quite frankly, I would be surprised
if they were
handled properly to qualify for a like-kind exchange. A colleague's
suggestion that
I change the code on the 1099-R when I enter the data is not
acceptable to me.
Two weeks to go and no new 1099-R's appear to be forthcoming.

========================================= MODERATOR'S COMMENT:
A 1099-R Code 3 is Disability Payment

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