TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Level 2

Question

Taxable gain from a life insurance policy lapse

Forum|Forum|4 years ago
October 27, 2021
2 replies
27 views

My life insurance policy has lapsed and I have a taxable gain (6 figures).

Can I write off this taxable gain against my stock tax loss carry forward (also 6 figures)?

Level 15

the term lapse usually means that the policy expired worthless because premiums weren't paid and there was no cash value left to cover the premiums. more likely the policy had a maturity clause which means if you lived to the specified age you would receive the value specified in the contract. This would be ordinary income to the extent it exceeds your basis in the policy. the insurance company should be sending you a 1099-R sometime in January of next year. if you have questions contact the insurance company.

Mike9241

Level 15

This is taxed as ordinary income not cap gains so it will not offset capital losses.