A Trump Presidency & Life Insurance & Taxes

axeman462

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Florida
Not trying to bring a political discussion here, but I found out yesterday that Trump plans to Tax Life insurance cash values. Was wondering if y'all took this into consideration. It could have a big effect on the Whole Life, IUL industry

From his Website:

"Reducing or eliminating deductions and loopholes available to the very rich, starting by steepening the curve of the Personal Exemption Phaseout and the Pease Limitation on itemized deductions. The Trump plan also phases out the tax exemption on life insurance interest for high-income earners, ends the current tax treatment of carried interest for speculative partnerships that do not grow businesses or create jobs and are not risking their own capital, and reduces or eliminates other loopholes for the very rich and special interests. These reductions and eliminations will not harm the economy or hurt the middle class. Because the Trump plan introduces a new business income rate within the personal income tax code, they will not harm small businesses either."

I have read other articles where they say he plans to not only tax the cash value interest, but also loans taken out from Life Insurance policies.
Thoughts?
 
Oh no he DI'INT!!
Trump thinks Fox News is tough to deal with wait 'til he starts hearing it from the life insurance lobby!
 
Not an opinion as there's no way he will be in the W.H.. That being said I do think others may consider some of his talking points especially about people and industries spending money with politicians for things to lean their way.
 
I've liked Trump, and if he's the nominee, I will vote for him... but he's getting lazy and his mouth knows no filters. He isn't thinking before speaking.

However, this topic comes up every few years. It's already been addressed back in the 80's with TAMRA, DEFRA, and TEFRA.

I'm not going to lose any sleep over this.

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Besides, how would it be carried out for high income earners? What would have to happen is life insurance companies sending out 1099 forms based on earnings received (above the basis in the policy) to EVERY policyholder. Then it would have to be determined by the income amounts reported.

It's just opening the door for EVERYONE'S cash values to be subject to taxation.


I'd like to see him try to tax someone's home market value adjustment every year.
 
Don't worry Trump's not going to be elected. If it's too hard for him now, what's it gonna be like in 6 months?

I wouldn't count on it.

And it's not too hard right now, he is kicking a** and taking names.

I'm just saying I don't think taxation on life insurance will happen either way.
 
Not trying to bring a political discussion here, but I found out yesterday that Trump plans to Tax Life insurance cash values. Was wondering if y'all took this into consideration. It could have a big effect on the Whole Life, IUL industry

From his Website:

"Reducing or eliminating deductions and loopholes available to the very rich, starting by steepening the curve of the Personal Exemption Phaseout and the Pease Limitation on itemized deductions. The Trump plan also phases out the tax exemption on life insurance interest for high-income earners, ends the current tax treatment of carried interest for speculative partnerships that do not grow businesses or create jobs and are not risking their own capital, and reduces or eliminates other loopholes for the very rich and special interests. These reductions and eliminations will not harm the economy or hurt the middle class. Because the Trump plan introduces a new business income rate within the personal income tax code, they will not harm small businesses either."

I have read other articles where they say he plans to not only tax the cash value interest, but also loans taken out from Life Insurance policies.
Thoughts?


This is not true. It is propoganda from Bernie Sanders
 
DHK, We already tax the gain on home values, it is called real estate tax and it is based on the home value. It would be pretty easy to tax Life insurance, I just don't see we continue this paper 1099 business anymore. All 1099 and W2 should be electronically filled to IRS by January 10 and IRS should make them available to everyone January 15 on a website. If someone wants IRS to mail them, they can pay for it to be mailed by January 30. We have the technology to do this, It would just put 100,000 IRS employees out of work( Democrats hate this) and it would put 80,000 CPA's out of work. ( Republicans hate this). May be we should have a 3rd party candidate like Trump or Bloomberg to shake the rules of politics and change few things. If Hillary or any other Republican candidate other then Trump is elected, I agree, nothing will change, may be Hillary will raise the Estate tax and that would mean more permanent life insurance sales.
 

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