In 2023 I accepted my LTC carrier's offer of surrender of the policy for an amount in excess of the total of premiums paid. The only person I've been able to speak with at the carrier (a clerk) tells me that I will receive no 1099 because this is a "tax qualified plan." My research tells me that "tax qualified" refers to BENEFITS paid, not a cash surrender in excess of premium paid.
So I conclude that the amount received in excess of the premium paid is taxable. (Do you agree?) Can I treat this as a capital gain?
Thanks for your help.
