If an annuitant, whose annuity starting date was January 1, 2008, dies before recovering his or her investment in the annuity, any unrecovered investment is recognized as a miscellaneous itemized deduction on the annuitant's tax return for the year of death. True or false?

Question

Social Studies

Clarence

30 August, 05:27

If an annuitant, whose annuity starting date was January 1, 2008, dies before recovering his or her investment in the annuity, any unrecovered investment is recognized as a miscellaneous itemized deduction on the annuitant's tax return for the year of death. True or false?

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Patton · Answer 1

Answer:TRUE

Explanation:Annulity is a contract between an insurance company and a person used primarily by retired workers of a company or Government agency. It guarantees constant stream of income, if a person dies before recovering all of his investment is recovered tax free, any unrecovered sum of money will be allowed as a miscellaneous itemized deduction on the person's final income tax.