 |
Guaranteed Income Rider, Tax Deductible?
10-03-2013, 12:17 PM
|
#1
|
|
Recycles dryer sheets
Join Date: Nov 2010
Posts: 136
|
Guaranteed Income Rider, Tax Deductible?
Is the cost of a guaranteed income rider on an annuity tax deductble, as an investment expense?
|
|
|
 |
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
|
10-03-2013, 12:29 PM
|
#2
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
|
Whatever product you are thinking about is probably a terrible idea, but yes, riders are usually counted as part of contract expenses and therefore tax deductible.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
|
|
|
|
|
10-03-2013, 01:11 PM
|
#3
|
|
Thinks s/he gets paid by the post
Join Date: Jan 2006
Posts: 4,172
|
Are these in the Miscellaneous category subject to a floor of 2% of AGI before you can deduct?
|
|
|
|
|
10-03-2013, 01:33 PM
|
#4
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
|
 Quote:
Originally Posted by kaneohe
Are these in the Miscellaneous category subject to a floor of 2% of AGI before you can deduct?
|
Usually the cost of these idiotic riders is just subtracted from the returns (if any) of the contract, just like the expense ratio of a mutual fund.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
|
|
|
|
|
10-03-2013, 01:54 PM
|
#5
|
|
Thinks s/he gets paid by the post
Join Date: Jan 2006
Posts: 4,172
|
Quote:
Originally Posted by brewer12345
Usually the cost of these idiotic riders is just subtracted from the returns (if any) of the contract, just like the expense ratio of a mutual fund.
|
so is the net return reported (as for a mutual fund) and you don't really deduct it yourself?
|
|
|
|
|
10-03-2013, 02:35 PM
|
#6
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
|
Quote:
Originally Posted by kaneohe
so is the net return reported (as for a mutual fund) and you don't really deduct it yourself?
|
Correct. All the IRS cares about is the net return of any investment.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
|
|
|
|
|
10-03-2013, 04:25 PM
|
#7
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,374
|
Quote:
Originally Posted by Archman
Is the cost of a guaranteed income rider on an annuity tax deductble, as an investment expense?
|
I don't think so, at least not in the way you are thinking about it as a Schedule A itemized deduction in the year it is paid.
I will ultimately be reflected in gain if/when you surrender or the taxable portion of the annuity if you annuitize.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
|
|
|
|
|
10-05-2013, 01:08 PM
|
#8
|
|
Recycles dryer sheets
Join Date: Nov 2010
Posts: 136
|
Quote:
Originally Posted by Archman
Is the cost of a guaranteed income rider on an annuity tax deductble, as an investment expense?
|
No.
|
|
|
|
|
10-05-2013, 01:10 PM
|
#9
|
|
Recycles dryer sheets
Join Date: Nov 2010
Posts: 136
|
Quote:
Originally Posted by brewer12345
Whatever product you are thinking about is probably a terrible idea, but yes, riders are usually counted as part of contract expenses and therefore tax deductible.
|
I've been looking into this closer, and it seems that these riders are not tax deductible.
|
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|
Linear Mode
