quick WL question

[scagnt83]

I don't know why that makes a difference but it apparently does if done at the same carrier even if technically a 1035.

For Boot calculations, Its about the front end of the transaction more than the back end, I think. As long as it is a "like" product.

Singe transaction from 1 carrier to another carrier. It stays tax free.

I have no clue how much case law or IRS guidance is out there for this type of situation.

No way for the IRS to know unless the client or accountant lets them know.

Or do you think the original carrier would send a 1099 to indicate the gain if it was considered Boot?

 

[Tahoe Ray]

No way for the IRS to know unless the client or accountant lets them know.

Or do you think the original carrier would send a 1099 to indicate the gain if it was considered Boot?

I'm guessing that it normally gets caught in an audit. I don't think there's any reporting that would signal it.

 

[Allen Trent]

For Boot calculations, Its about the front end of the transaction more than the back end, I think. As long as it is a "like" product.

Singe transaction from 1 carrier to another carrier. It stays tax free.

I have no clue how much case law or IRS guidance is out there for this type of situation.

No way for the IRS to know unless the client or accountant lets them know.

Or do you think the original carrier would send a 1099 to indicate the gain if it was considered Boot?

I don't think that is true under specific laws. Getting cash out, or 1035 to non like kind or use to extinguish loan would be considered boot.