Tratamiento FiscalPregunta 457 de 716
If a policyowner surrenders a whole life policy for its cash value, any amount received above the total premiums paid (the cost basis) is:
a.Reportable only if the policy was a modified endowment contract
b.Always taxable to the policyowner as ordinary income
c.Taxed at long-term capital gains rates
d.Received completely tax-free, like a death benefit
Explicación
On surrender, the gain (cash value received minus the cost basis of premiums paid) is taxed as ordinary income, not as a capital gain. It is not tax-free, and it must be reported. The portion equal to the premiums paid is a tax-free return of basis. This is a common exam point: living gains from life insurance and annuities are ordinary income, never capital gains, even though the underlying growth felt like an investment return.
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Revisado por John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verificar)