If an annuitant dies before recovering the entire investment in the annuity contract, the amount of the unrecovered investment is allowed as a deduction on the taxpayer's final tax return.

Question

Quizplus · Accepted Answer

This is true. The amount of the unrecovered investment is allowed as a deduction on the taxpayer's final tax return in the year of the annuitant's death.

If an Annuitant Dies Before Recovering the Entire Investment in the Annuity