I need to file an ammended 1998 return to report a loss from cancellation of a Variable Universal Life Insurance policy. I have a basic question regarding which portion of the loss is deductible. Here goes ...Invested $36,000 over 2 years. The broker fees (5%) totalled $1,800. The actual cost of the policy (i.e. approximately $50 per month over 2+ years) was $1500. The surrender charge was $3,200. I received a check for $27,000 at cancellation. The investment itself lost approximately $2,500 over the duration.Initial investment: $36,000Broker Fees: 1,800Insurance Cost: 1,500Surrender Fee: 3,200Take home: 27,000Ugh! What an investment! Live and learn.I assume that all is deductible, including broker/surrender fees, except the actual cost of insurance. So, $36,000-27,000-1,500=$7,500 loss.Am I on track here or am I overly optimistic?Also, the dollars were initially placed into a fixed MM account and then distributed across several fine mutual funds over time, all of which performed as I would now expect, lousy. Do I need to identify the specific funds, or since they were under the VUL policy (and the VUL instrument is similar to an IRA in that funds can be moved in and out of various investments within the policy without tax implications), can I just specify the fixed MM account for tax purposes?Any advice would be greatly appreciated.Tim
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