Form 1099-SB, Seller's Investment in Life Insurance Contract, will be filed by the issuer of a life insurance contract if they receive a statement from an acquirer in a reportable policy sale provided under section 6050Y(a) or they receive notice of a transfer of the life insurance contract to a foreign person. You don't need to enter this form on your return. See here for more information about Form 1099-SB.
Form 1099-LS is issued to the person to whom payments were made to acquire a policy. In general, a reportable policy sale payment recipient (payment recipient) is any person that receives a reportable policy sale payment in a reportable policy sale. There is not a specific place to enter Form 1099-LS; you can enter your cost basis (premiums paid) and the amount you received in the Investments section of TurboTax:
- Go to the INCOME section
- Select "I'll choose what I work on"
- Scroll down to Investment income
- Select Stocks, Bonds etc...
- No you did not get a 1099-B
- Type of investment you sold Everything Else
- Description is 1099-LS Life Ins., Amount and Date
- It may ask for the date a second time
- You Purchased the property (if you acquired the policy by paying premiums)
- Now you can enter the cost basis and date
If you received proceeds in excess of your basis (premiums paid), the excess is a capital gain from the sale of an investment.
See this thread for further discussion of this issue and this tax tips article regarding the taxability of life insurance.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
