Are you wondering about life settlement tax rules in Fort Lauderdale, FL?

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Are you wondering about life settlement tax rules in Fort Lauderdale, FL? When you sell your life insurance policy, part of the proceeds may be subject to taxation. But how is it taxed? The amount you receive up to the total premiums paid (cost basis) is tax-free, while any excess could be taxed as ordinary income or capital gains. Florida does not have a state income tax, but federal tax laws still apply. Unsure about your tax liability? Consulting a tax professional can help you understand how life settlement tax rules affect your situation in Fort Lauderdale, FL.