Insurance policy surrender cash value taxable income?

[kalpadaru]

Upon surrendering a paid-up insurance policy for cash, this amount is reported as income to the IRS by the insurance company. Is there any legal way to avoid/reduce/eliminate these taxes, especially if the payee is a senior citizen over 65?

Kalpadaru

[knowledgeable]

Dependiing upon ...

... the exact type of policy and the investments and your age, yes you do have a chance of not having to pay taxes on the en-cashing of this policy.

In addition, another variable is the total income for the person in that year.

You're better of working with a senior CPA.

Good luck.

[kalpadaru]

... the exact type of policy and the investments and your age, yes you do have a chance of not having to pay taxes on the en-cashing of this policy.

In addition, another variable is the total income for the person in that year.

You're better of working with a senior CPA.

Good luck.

Thanks.

Kalpadaru