I just had something happen to me that has never happened to me in 27+ years in the business. I wrote a large annuity which resulted in a 40k commission in Feb 2015. The client died in late November. Just received the 1099 from the company it was written with, and am wondering how this works in regard to income taxes. I already have made a payment arrangement with the company. The taxes are my main concern. Is there a way to deduct the loss for 2015? or 2016? I've seen a few posts relating to this topic, but they seem to be mostly about advances. Any help would be appreciated.
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I am not a tax advisor, however since the entire business revenue loss ($40k) was realized in 2015, regardless of how you finance the loss to be repaid, it should be deducted in full from your gross revenues for 2015.
Just my thoughts.
Just my thoughts.
- 334
The 1099 is for the gross commission you received? How much was charged back? The 1099 wasn't for the net commission?
Need more info.
Need more info.
With a several carriers, death in the 1st year is 100% chargeback.
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- 10,853
That ain't good
Well the carrier has to refund the premium to the bene and actually loses money on the whole process. Why should the agent get to make money when the carrier makes no money and the client makes no money?
Actually the client or in this case Beneficiary is the actual Winner...... No Taxes on the cash transfer.
Skipper
- Thread starter
- #8
The 1099 was for 72k. 40k of that is a chargeback.
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Really! Yes, I am well aware of that. Thanks.
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I'm not sure how you see that the agent made money. The agent (me) is repaying the issuing company 2k a month until the debt is satisfied. Please explain to me how the agent is making money?
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I appreciate your thoughtful reply. Thank you!
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- 10,853
I'm not sure how you see that the agent made money. The agent (me) is repaying the issuing company 2k a month until the debt is satisfied. Please explain to me how the agent is making money?
I never said that. Re-read what you quoted. Another poster said "that aint good" to the fact that its a 100% chargeback in the 1st year. I asked them "WHY SHOULD the agent make money (meaning not get charged back) when nobody else in the situation does?" I did not say they did, I asked why they should.
If you still do not understand what I was saying to the other poster:
A 100% chargeback in the 1st year is fair. They did not make money and neither should you.
- Thread starter
- #10
My apologies for misunderstanding your initial statement.
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