I surrendered a variable annuity. The company in a letter advised me of my loss. I called them and they told me the loss would not appear on a 1099-R. I did get a 1099-R for the taxable portion of the withdrawals made during 2019. . In my research it was clear it is not a schedule D capital loss. What I read was split between those saying it is a deduction subject to the 2% limitation and those that say it can be taken as a misc gain or loss on the 1040 line 7A, schedule 1 using form 4797. Apparently there are no concrete IRS regulations or ruling. The company would provide no guidance which I assumed would be their position. What does the group think?
