Quote:
Originally Posted by Gigi3000
I talked to the bank advisor who said I would keep the same annunity (which is.in a balanced fund 60/40) but they are checking if it has an exclusion ratio. If not, I would have to pay taxes on the whole $360,000( over 5 years)....no benefit of cost basis. How can they sell something like that?
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That doesn't sound correct. If the person you inherited the annuity from had a non-taxable cost basis, you should have the same cost basis. I would get an opinion from an experienced tax preparer. Also, if the person who purchased the annuity had an accountant or tax preparer, I would contact them. They should have maintained a record of the annuity cost basis. When you purchase any investment that has a cost basis, it is your responsibility to maintain records to prove to the IRS that you have a cost basis when you sell the investment. Sometimes, those records can go back decades.