Has anyone seen a circumstance where a whole/universal policy owner would receive a 1099 for interest capitialized on a policy loan? Makes no sense to me, but client's CPA is swearing it's the case.

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After getting more info I think I have this thing figured out. It was a single premium policy taken out in 2004, and modified to add a paid-up additions rider in 2006. The loan was subsequently made in 2008, which appears to have violated the 7-Pay Premium rule and got the thing re-classified as a MEC. That would make the loan taxable to the extent of gains. It still doesn't explain why the 1099 would mirror the interest accrual on the loan. Could just be a coincidence

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They had a bad advisor if they allowed a policy to mec

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If the policy loan is still outstanding when an insurance policy lapses and/or is surrendered then the amount of the loan (and interest) will be considered taxable income. If the policy has not lapsed or been surrendered the capitalized interest should either be reducing the death benefit , or increasing the loan balance (tax deferred) rather than become taxable income.

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Hi fishes!

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Part of MC team.

Thank you.

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Thanks

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One hour delay on United this morning due to crew unavailability. Worth asking for points or credit? If yes, how much?

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When 1 can change project/team within NielsenIQ ? Any specific criteria/duration ?

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Looking for a producer for helping me to scope a branding (traditional+digital) and digital experience (mainly UI look and feel) project. Will need help with creating timelines as well. Would appreciate hearing from people with experience on these areas.

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Temporarily transferring abroad for eventual L1 return - what do I do with my US credit cards? (CSR, Bonvoy) Wondering if the annual fee and FX is worth keeping them?

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Partner on day 1 of every project 💀🔫

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As the weather begins to change - what are your favorite Fall activities around Portland? Be specific too! A favorite corn maze or farm? A favorite restaurant- let us know!

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Hello all, currently i am working at Infosys as Technology Analyst. I am a Java resource with having 5.3 years of experience.

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