Reporting the sale of a Life Insurance Policy

[HifiManiac]

I recently sold my whole life policy with a $1M death benefit () but with a loan of 208k) and received a 1099-LS for $340,000.  I was told the taxable amount will be the $340,000 minus the premiums paid into the policy over 20 years of $226000.00 and change.  I don't see anywhere how I add the premiums paid to offset the taxable amount I owe.  I was told the taxes I would pay would be at a Capital Gains rate, not Ordinary Income.  The Turbo Tax Premium software has no way of recording this except the full 1099-LS.

Can anyone guide me on this and send a link that explains it?  Much appreciated.

Hifimaniac