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Question for the Money Doctors

Question submitted on Jul 21, 2015.

Question

Have a variable life insurance policy with a surrender amount of $13,834 and a cost basis of
$18,100.04 - how will this effect my tax return ?

Answer

Because the surrender value is lower than your cost basis, there will be no taxable income if you decide to cancel your policy.  Please consult a tax advisor regarding your specific situation.  Visit www.findacpapfs.org to find an advisor near you.


For additional information visit http://www.360financialliteracy.org/

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