About summit Life
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Academic Level Associate
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Age 38 - 42 Years
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Salary 1850
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Gender Male
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Industry Management
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Viewed 17
About me
If you’re considering a viatical settlement in Fort Lauderdale, understanding the tax implications is crucial. In most cases, viatical settlement proceeds are tax-free at the federal level, provided the insured is terminally ill, with a life expectancy of 24 months or less. The IRS allows these proceeds to be exempt from federal income tax. Since Florida does not impose a state income tax, residents of Fort Lauderdale generally do not face any state tax on the proceeds either.
However, it’s important to ensure that the settlement complies with IRS and Florida regulations to maintain tax-exempt status. If the insured is not terminally ill, or if the settlement does not meet the necessary requirements, the proceeds may be subject to ordinary income or capital gains taxes.
Before proceeding, it’s recommended to consult a licensed viatical settlement broker and tax professional to ensure compliance and optimize your financial outcome.