Hello- We will be incurring a 6-figure FIXED annuity loss due to a failed insurer. The insurer will be liquidated on 11/30/24. Because of a fraudulent agent's misguidance, we were vested beyond our state guaranty fund limits. (The former insurance company owner incurred one federal conviction and faces a 2nd fed conviction right now.) Again, this involves FIXED annuity losses, not variable -- big difference.
1. Is the loss deductible?
2. If so, which line; Miscellaneous Deduction or Ordinary Loss, subject to the 2% AGI rule?
3. We are more than well documented, including the federal charges & convictions of the failed insurer's owner, and I am a registered victim is this (huge) scandal with the USDOJ, in case of an audit.
Thank you all very much!
