Life settlement additional premiums

Life settlement additional premiums - how to treat

I have several Life Settlement Insurance investments in my IRA account. Last year, I began having to pay additional premiums for these settlements, as "my invested amounts" were exhausted! How do I treat these additional amounts? They will most definitely reduce my overall capital gain, but do I have to wait until I actually collect on these settlements in order to offset these additional costs, or is there a way I can claim them in the year in which they are actually paid? The amounts are not insignificant and could affect my tax refund considerably.

posted

AFAIK owing life insurance in a IRA is not legal.

For couple of articles see:

https://www.mmmlaw.com/media/can-iras-invest-in-life-settlements/

https://americanira.com/2013/10/08/life-settlements-in-your-self-directed-ira-not-so-fast/

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**