Tax Court Allows Loan Interest Deduction in Life Policy Termination Case
April 30, 2026 by Allison Bell
A U.S. Tax Court judge ruled earlier this month that the former owner of a failed printing business must pay income taxes on the surrender value of a terminated life insurance policy, even though all of the value went toward paying off an $80,000 policy loan.
But Judge Elizabeth Copeland found that the taxpayer, Jonathan Sawyer, had invested the cash from the loan in an effort to save the printing business, Henry N. Sawyer Co.
Originally Posted at Think Advisor on Apr 28, 2026 by Allison Bell.
Categories: Industry Articles
