I cashed in a small whole life insurance policy last year. Is this money taxable???
2007-02-12 12:07:28 · 3 answers · asked by Cheryl/Doug B 1 in Business & Finance ➔ Taxes ➔ United States
You will only be taxed on the gains. The gains is the difference on how much you put in and the value of the cash value.
If you paid a total of $2500 in premiums and the value of the cash value is only $1200, then you don't owe any taxes.
Insurance company should of send you a tax statement on what to report, which should be zero.
2007-02-12 16:33:45 · answer #1 · answered by Anonymous · 4⤊ 0⤋
Life insurance with cash value don't pay out cash value when you die! They say its a good way to build savings! How is that so if you lose it all and it doesn't go to anyone when you die? People say you can borrow it. Why do I want to borrow my own money that I paid for? Cash value = scams!
2007-02-13 08:41:05 · answer #2 · answered by Anonymous · 0⤊ 0⤋
probably, depending on the policy , your age , and whether you report it or not.
2007-02-12 12:15:43 · answer #3 · answered by geezer 51 5 · 0⤊ 0⤋