I turned in a insurance policy that I have been paying on for 35 yrs, I was told it would be

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GRANPAPPY1
GRANPAPPY1 Member Posts: 2 Newcomer
edited January 15 in Filing my taxes

reported as a capital gains, it seems to me that since I have paid more than the policy' va lue over the years it would be a capital loss.

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  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 247
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    Hi Granpappy1,

    It is possible to have a capital gain, but in your case where you are getting less than your premiums (payments), you are only getting a return of your premiums. A loss is NOT generally deductible in cases like this.

    Look for some form or letter from the insurance company in the coming tax year.

  • GRANPAPPY1
    GRANPAPPY1 Member Posts: 2 Newcomer
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    Thank you, I was not trying to file as a capital loss, only not having to pay a couple of thou up front. Again I thank you and if you have any thing else to advise, it would be appreciated.