Sold Swiss Life annuity - no 1099R/B - how to enter into Premier?

[lowtidesnook]

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

[AmyC]

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:

1. go to the federal income section
2. scroll to the bottom
3. Miscellaneous Income, 1099-A, 1099-C, Start
4. Scroll to the bottom
5. Other reportable income, Start
6. Other taxable income?
7. Select YES
8. Description  - whatever you want to say, something like -Swiss Life Insurance cashed out
9. Amount, enter your amount of gain
10. Continue

[lowtidesnook]

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.

[lowtidesnook]

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?

[DaveF1006]

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.

1. Log into your account
2. Select Wages and income
3. Less Common income
4. Miscellaneous Income, 1099-A, 1099>start
5. Scroll to the bottom of the page to Other Reportable Income
6. Other taxable income, answer yes
7. Then give a brief description of the income and the amount listed..
8. Once this appears in a summary screen, click on the Add Miscellaneous Income Item and then call it  Swiss Annuity income-No 1099R received and record the amount received for 2024

@lowtidesnook 

[lowtidesnook]

Wow thanks again this is great.  Will proceed this way and remove the data I've input on the 1099R section.  

Thanks again..

[lowtidesnook]

I'm actually doing this right now great instructions went right to it.  I don't see any way to input my cost basis.  I realize this will be taxed as income and I have my cost basis ready to be input if need be.  I have all 3 totals here:  Swiss Life annuity payment, my original cost basis from Swiss Life one time initial funding certificate and of course the taxable gain(to be taxed at income rate)

I see the entry description for 'total miscellaneous taxable income' and I'm assuming all I need to do is input the amount that is to be taxed, not the full Swiss Life annuity payment.

Thank you again for your knowledge and patience with me

[DaveF1006]

Yes, report only the gain of the sale since this is the only income that should be taxable in the manner I prescribed previously.

@lowtidesnook 

[lowtidesnook]

Thank you again so much.  Now all I need is Vanguard to dump their tax form end of month and we are cookin.

Thank you thank you