An Improperly Cancelled or Lapsed Life Insurance Policy Can Lead to Taxable Income

A recent Tax Court decision, Estate of Feder, T.C. No. 1628-10, T.C. Memo. 2012-10, January 10, 2012, shows advisors that the Tax Court had no trouble ruling that the taxpayer, Yulia Feder, received taxable income on the lapse of her old Northwestern Mutual life insurance policy despite the fact that she did not receive any cash from the […]