Variable Annuity Loss Analysis

The Upside of Being Down VA Loss Analysis

If you are like millions of Americans, your investment portfolio may contain underwater variable annuities. We have found many clients looking for an opportunity to surrender their underperforming variable annuities, but they are hesitant to lock in losses and potentially incur additional surrender charges.

In contrast to stocks and bonds, which when valued at less than the original cost and sold, are treated 
as either a short-term or long-term capital loss. Any loss that exceeds other capital gains can then be used
 against ordinary income, but only up to $3,000 annually.
 A variable annuity loss is treated as an ordinary loss and deductible against ordinary 
income, limited only by the amount of taxable income you have for the year.

Are you looking for additional tax deductions for the upcoming tax season?

Are you holding on to underperforming annuities, hoping that they bounce back?

There may be an opportunity for you to utilize those losses to lower your overall tax burden

Our team of CPA's will help you determine if you can take advantage of a little-known strategy.

Have questions? Contact us or call 855-872-8593.

Adagio Capital Advisors is based in Southwest Florida.