If an annuitant, whose annuity starting date was January 1, 2001, dies before recovering his or her investment in the annuity, any unrecovered investment is recognized as a loss on the annuitant's tax return for the year of death.

Question

Quizplus · Accepted Answer

This statement is true according to IRS rules for the taxation of annuities. Any unrecovered investment in an annuity is recognized as a loss on the annuitant's tax return for the year of death, and can be used to reduce the annuitant's taxable income for that year.

If an Annuitant, Whose Annuity Starting Date Was January 1