I've been filing FBARs since the law change on a policy opened in the late 90's. It was supposed to start paying me income in 2027, but I chose to just sell the policy this past year 2024. So, per the usual I will file another FBAR(for the last time!) since I owned it for a few months in 2024. Swiss Life was awful to deal with once I notified them I was selling like pulling teeth to get anything done up to and including sending my money in a timely manner. No 1099R/B ever sent, but I do have the original policy certificate, amount paid and obviously the liquidation value wired to my account upon sale.
Been using Premier now since 2012 doing my K-1's like a breeze and other investments easily imported so nice love TT. However this annuity sale with no accompanying documents from Swiss Life is making the task quite challenging for me.
Is this doable to enter all the pertinent info on the sale of this policy so I can pay the ordinary income tax on the gain and report it properly? I have the cost basis and gain calculated just unsure where I need to plug all these numbers in. Would be thrilled if this is straight forward and one of the pros here could guide me along please.
Thanks
You'll need to sign in or create an account to connect with an expert.
Yes. The most correct method would be a substitute 1099-R but that won't allow you to e-file. Instead, let's make this really easy. You will want to enter the additional income as Other Income. You will need to subtract out your basis and enter just the gain.
Follow these steps to enter the income:
Just to clarify once more b/c I'm a dummy please.
Even though this 'should' be a 1099R, but Swiss Life isn't cooperating I can just enter this as other income? I also have to file and FBAR this year since I did own it for a few months. No issues there potentially? Just want ot make sure I'm not screwing this part up along with FBAR reporting which is a royal pain. Thank you again.
I ask b/c I've already gone into the section for 1099R and put in the info, but it sounds like if I try to efile it might get rejected using that section?
Yes, electronic filing may be rejected if there is missing information. I would enter this as other income>less common income in the following manner.
Wow thanks again this is great. Will proceed this way and remove the data I've input on the 1099R section.
Thanks again..
I'm actually doing this right now, but one more question please. I don't see any way to put in my cost basis so I'm only taxed on the gain of the sale. Great instructions went right to it.
Is there somewhere else I can input my cost basis on the annuity please? Or do I simply put the gain on the sale only in the other reportable income? Thanks....I think this is right, but want to make sure. It does say 'total miscellaneous taxable income' which I assume will suffice as I input the taxable amount.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
tapman2020
New Member
shnielsen53
New Member
laks
New Member
dztt
New Member
bob_furick
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.