Annuity Sale Basis Floor
IRC §1021
Ensures that the adjusted basis of an annuity contract cannot be reduced below zero for the purpose of calculating gain or loss upon sale.
Eligibility
Applies to any taxpayer selling an annuity contract where cumulative tax-free returns of investment might otherwise have reduced the basis to a negative number.
Frequently Asked Questions
Who is eligible for the Annuity Sale Basis Floor?
Applies to any taxpayer selling an annuity contract where cumulative tax-free returns of investment might otherwise have reduced the basis to a negative number.
How does the Annuity Sale Basis Floor work?
Ensures that the adjusted basis of an annuity contract cannot be reduced below zero for the purpose of calculating gain or loss upon sale.
What law authorizes the Annuity Sale Basis Floor?
The Annuity Sale Basis Floor is authorized under IRC §1021 of the Internal Revenue Code (Title 26, United States Code).
Statutory Text — IRC §1021
Source: Internal Revenue Code, Title 26, United States Code
Legal Sources
US Code (Official) — 26 USC §1021 → Cornell Law Institute — 26 USC §1021 → Search IRS.gov for IRC §1021 → Treasury Regulations (26 CFR) →Discovered by: discovery_engine_v1
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