Thanks, I appreciate your expertise on this issue. My thoughts are that I would enter the money I received as "Other Income" or "Income from foreign sources" and have the life insurance accounts listed under foreign assets. Since I paid foreign income tax already, I would go for a foreign tax credit, unless the taxes owed are insufficient to generate the credit. However, the alternative might be to reduce the money I received by the amount paid in foreign taxes and just list the net amount under "Other Income." I read somewhere on this board where it is possible that little of this is actually earned income and that it is just my returned investment (minus any premium I may have paid over the years, if I still have the records...). But this means I might have to list how much actual income was generated over the years, which could be difficult/impossible to know.
Just a few of my thoughts. Thanks again for your help. BTW, what are Mar-to-Market rules?
Gary
