What is IRS Form 1099-SB and why it matters?
IRS Form 1099-SB, titled “Seller’s Investment in Life Insurance Contract,” is a tax form used to report the sale, transfer, or assignment of a life insurance policy. It’s issued by the original insurance company to provide the new policyholder with important tax information about the policy’s cost basis, which will be relevant if the policy […]
Real-Life Case Studies: Reporting Gambling Winnings with Form W-2G
Here’s an example of a real-life situation involving IRS Form W-2G that illustrates how it works, who’s responsible for what, and some of the tax implications: Case Study: Casino Jackpot Winner Background Mary, an avid bingo player, visits a casino and wins a jackpot of $2,500 playing a slot machine. She is ecstatic about her […]
