Re: [taxchat] Inherited Annuities

What treatment do you give it?  Is the original investment the basis?  If the deceased had started receiving the annuity wouldn't the original investment be tax free since this is not a tax sheltered annuity?  And what if you don't know exactly what the original investment is?

 

Example:  Original investment (not tax sheltered) was $12,000 and Annuity at Death was worth $14,000.  How would you treat this?

 

Thanks,
Larry Vaughn
"IN GOD WE TRUST!"
lvaughn@ftc-i.net

 

"A government which robs Peter to pay Paul can always depend on the support of Paul."  George Bernard Shaw

 

"The inherent vice of capitalism is the unequal sharing of the blessings. The inherent blessing of socialism is the equal sharing of misery."  Winston Churchill

 

"I'll keep my freedom, my guns, and my money, you can keep THE CHANGE." I voted for McCain/Palin

 

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----- Original Message -----

From: Lynne Ayton

To: taxchat@yahoogroups.com

Sent: Monday, November 03, 2008 8:20 AM

Subject: Re: [taxchat] Inherited Annuities

neither have i.
lynne

Debbie Wilson wrote:

I was the one that asked and I can find nothing that says you can get a step up.  I've looked everywhere.  I've been doing this for 30 years and have never seen one that is stepped up.

Debbie wilson

From: taxchat@yahoogroups.com [mailto:taxchat@yahoogroups.com] On Behalf Of Larry Vaughn
Sent: Friday, October 31, 2008 5:45 PM
To: Tax Chat
Subject: [taxchat] Inherited Annuities

Recently there was a question concerning stepped up basis for an inherited annuity.  Do I recall correctly that someone said you could use a stepped up basis?  Is there a reference for this?

Thanks,
Larry Vaughn
"IN GOD WE TRUST!"
lvaughn@ftc-i.net

"A government which robs Peter to pay Paul can always depend on the support of Paul."  George Bernard Shaw

"The inherent vice of capitalism is the unequal sharing of the blessings. The inherent blessing of socialism is the equal sharing of misery."  Winston Churchill

All text and attachments are checked by McAfee ViruScan

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