We surrendered life insurance policies that had a cash value with a loan against them. We received a 1099-R for each with a much higher amount than the checks we received. Can we deduct the loan principal and/or interest from the taxes we owe? example 53000 cash value 16000 loan principal 30000 loan interest so we received a check for 7000, however the 1099-R is for the full 53000 even though we only received 7000 as what we would consider as income. Thanks for helping with this.
