Tratamiento FiscalPregunta 456 de 716
A loan taken against the cash value of a life insurance policy is generally:
a.Fully taxable in the year it is taken
b.Not taxable as long as the policy remains in force
c.Deductible as interest by the borrower
d.Subject to an automatic fifty percent penalty at the time it is taken
Explicación
A policy loan is not treated as taxable income while the policy stays in force, because it is a loan against the owner's own cash value, not a distribution. It is not automatically taxable, the interest is generally not deductible for personal policies, and there is no fifty percent penalty. However, if the policy later lapses or is surrendered with a loan outstanding, the previously untaxed gain can become taxable, so unpaid loans carry a hidden tax risk (and this does not apply the same way to a MEC).
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Preguntas relacionadas de este tema
- Once a policy is classified as a modified endowment contract (MEC), distributions taken during the insured's life, such as loans and withdrawals, are:
- A Section 1035 exchange allows a policyowner to:
- Which of the following is a permissible tax-free Section 1035 exchange?
- If a policyowner surrenders a whole life policy for its cash value, any amount received above the total premiums paid (the cost basis) is:
- Dividends paid on a participating life insurance policy are generally treated for federal tax purposes as:
- Premiums paid for a personal life insurance policy are generally:
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Revisado por John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verificar)