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  3. Cost-recovery (FIFO) basis

Exam term

Cost-recovery (FIFO) basis

A tax rule for non-MEC policy withdrawals under which amounts up to the investment in the contract come out tax-free before any gain is taxed.

Lessons that use this term

  • Tax treatment of life insurance premiums, proceeds, and MECs New York
  • Tax treatment of life insurance premiums, proceeds, and MECs Texas

Exam prep

  • Insurance
  • Real Estate
  • SAFE MLO
  • SIE

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