Discussion:Just what we need on April 12th
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Discussion Forum Index --> Tax Questions --> Just what we need on April 12th
Death&Taxes (talk|edits) said: | 12 April 2007 |
| A court has ruled that demutualized insurance companies do not take a zero basis, but has not determined how to calculate the basis to be used. This is from Kiplinger, and I saw this elsewhere this week. They advise protective claims using Form 1040X be filed for 2003 before the statute lapses this coming Tuesday.
Might be simpler if between ourselves, we could learn which insurance companies demutualized that year so we might alert our clients by email. | |
| April 12, 2007 | |
| Taiyo Life | |
| 12 April 2007 | |
| It is not the year of demutualization, but the year client sold the stock that matters. Around here we had most of the amended returns prepared and ready to go last fall. | |
Death&Taxes (talk|edits) said: | 12 April 2007 |
| Most true, Dennis, and from what I recall, most of the numbers were small where usually the client took the money and ran, so to speak. The others often still hold the stock but can't remember where it came from or why they are getting a dividend. Met Life is a good example. | |
| 12 April 2007 | |
| With Anthem , since 2001 and if client sold that year , they are out of luck? | |
Death&Taxes (talk|edits) said: | 12 April 2007 |
| Right, I sold Equitable far earlier than that, but had it been 2003, the dollars were not enough to warrant me paying someone to process a protective claim and then the real thing later. | |
| 12 April 2007 | |
| I think Northwestern Mutual is the only one left that has not demutualized! Decent company that Northwestern. | |
| 17 June 2007 | |
| My client just sold Anthem in 2007. Any help on figuring basis? | |
| 18 June 2007 | |
| There's some back-and-forth here about how to figure out basis. To figure basis, get the info directly from the entity that demutualized. If they don't provide the basis, you still CAN use zero and pay more tax. You can then file an amended return if you ever get a basis figure. The IRS does not object to people using zero basis because then they pay more tax. | |
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