loss on annuity redemption

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L1: loss on annuity redemptionIf a person invests $150,000 into an annuity – then 2 years later cashes in the annuity for $140,000 – is the loss deductible? If so where? Please provide specific guidance to IRS code, publications or Rev Rulings.

Thanks!
2003-02-15 07:55, By: jean, IP: [127.0.0.1]

L2: loss on annuity redemptionThe answer is maybe. If it is a loss, it is an ordinary loss, not a capital loss and it would be subject to the 2% of AGI rule. In additiion,a miscellaneous itemized deduction is subject to the phase-out of itemized deductions for individual taxpayers with income above certain levels.
See IRC Section 165 to determine whether the loss is deductible and see the instructions to IRS form 1040 for where to take the loss.2003-02-16 11:38, By: Gfw, IP: [127.0.0.1]