QUESTION
Is there tax liability involved if I cash in my life insurance policy? How?
Asked on Jun 04th, 2015 on Taxation - Colorado
More details to this question:
I am thinking about cashing in my life insurance policy for the current cash value. What kind of taxes will I have to pay? At this point I think that I have paid more in premiums than the cash value.
3 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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If you've paid more in premiums than the cash value, there is no taxable income (because you'll have a loss on the policy).
Answered on Jun 05th, 2015 at 4:51 AM
Taxation Law Attorney serving Glendale, CA
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Irsfeld, Irsfeld & Younger LLP
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If you've paid more in than you get out, no tax.
Answered on Jun 04th, 2015 at 2:09 PM
There may be. Before proceeding, visit with your CPA first.
Answered on Jun 04th, 2015 at 12:20 PM