What is my cost basis?
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The short answer
Your cost basis generally starts with the premiums you paid, but adjustments may apply. Your insurer and a tax professional can help establish the correct figure.
What to know
Your cost basis generally starts with the premiums you paid, but adjustments may apply. Your insurer and a tax professional can help establish the correct figure.
Before you decide
Gather premium-payment records, policy statements, withdrawals and loan details. Do not assume that the current cash value is your cost basis. Have a tax professional review the records before estimating taxes.
General information, not tax, legal or financial advice. Rules and circumstances vary. Consult a qualified professional before making a decision.
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