Sentences with phrase «outstanding loans taxable»

Not exact matches

Also, forgiveness of federal student loan debt is taxable as income in the year outstanding loan balances are canceled.

In terms of taxation, the excess of the cash surrender value of the policy (plus any outstanding loans) over your basis in the contract is treated as taxable income.

The reason for 60 days is that this is the deadline to complete an indirect rollover into a new retirement account (if your employer were to cash out your entire balance and hand you a check) and pay back any outstanding loans on your 401 (k)(if not paid, they become taxable income and may even trigger penalties).

And if a policy lapses with an outstanding loan in excess of the cost basis, it's taxable.

Also, forgiveness of federal student loan debt is taxable as income in the year outstanding loan balances are canceled.

If you default on the loan, the Internal Revenue Service treats the outstanding debt as a taxable withdrawal.

However, if you default on the loan, the entire outstanding balance will be considered a taxable distribution.

If you do not re-pay the loan within that time period your loan will go into default and the outstanding balance of the loan is treated as a taxable distribution.

Second, if a policy lapses or is surrendered with an outstanding loan, and the amount of the loan plus the cash surrender value is more than the sum of premiums paid, the excess will be taxable.

However, if your policy lapses and you have an outstanding policy loan, it could result in a taxable event.

f. Taxable amount, resulting from the difference between the new loan amount, plus the amount of advances in case of modifications, less the outstanding principal balance of the existing deed.

However, be aware that there is a potential taxable gain if your policy lapses or is surrendered while an outstanding loan exists.

Among these requirements are the following: (i) at least 90 % of the fund's gross income each taxable year must be derived from dividends, interest, payments with respect to securities loans, and gains from the sale or other disposition of stock, securities or foreign currencies, or other income derived with respect to its business of investing in such stock or securities or currencies and net income derived from an interest in a qualified publicly traded partnership; (ii) at the close of each quarter of the fund's taxable year, at least 50 % of the value of its total assets must be represented by cash and cash items, U.S. Government securities, securities of other RICs and other securities, with such other securities limited, in respect of any one issuer, to an amount that does not exceed 5 % of the value of a Fund's assets and that does not represent more than 10 % of the outstanding voting securities of such issuer; and (iii) at the close of each quarter of the fund's taxable year, not more than 25 % of the value of its assets may be invested in securities (other than U.S. Government securities or the securities of other RICs) of any one issuer or of two or more issuers and which are engaged in the same, similar, or related trades or businesses if the fund owns at least 20 % of the voting power of such issuers, or the securities of one or more qualified publicly traded partnerships.

If your policy terminates you will have to add to your taxable income outstanding loan amount excess and any cash given to you above your cost basis in your policy.

And if a policy lapses with an outstanding loan in excess of the cost basis, it's taxable.

If the policy lapses with an outstanding loan in excess of its cost basis, it's taxable.

If the policy owner doesn't pay the policy loan back and their plan is canceled, the amount outstanding can be considered a «gain» and the insurer will report it to the IRS as taxable income.

It is possible that the IRS or a court could assert that the policy has been effectively terminated and the outstanding loan balance should be treated as a distribution — all or a portion of which could be taxable when the rider is exercised.

The good news is borrowed amounts from non-MEC policies are not taxable, and you don't have to make payments on the loan, even though the outstanding loan balance might be accruing interest.

If the loan is still outstanding when the policy lapses or if you later surrender the insurance, the borrowed amount becomes taxable to the extent the cash value (without reduction for the outstanding loan balance) exceeds your basis in the contract.

As a result, if a life insurance policy is surrendered to repay an outstanding life insurance loan, the net transaction can have tax consequences — not because the repayment of the loan is taxable, but because the surrender of the underlying policy to repay the loan may be taxable.

In other situations, though, the policy may have an outstanding loan, which potentially undermines the internal rate of return (as loan interest compounds) and can increase the risk that the policy lapses (which in the case of a policy with a loan can trigger a taxable event, in addition to lapsing the policy itself!).

However, if your policy lapses and you have an outstanding policy loan, it could result in a taxable event.

This expiration could cause all the outstanding loans within the policy to be taxable.