Question: Cody decided to purchase a variable annuity and inveited $ 5 0 , 0 0 0 . He made a few poor investment decinions and

Cody decided to purchase a variable annuity and inveited $

50, 000 .

He made a few poor investment decinions and the market dropped. Lhe many inueitork, he decided to selt when the value was low. He surrendered the annuity and recelved $

27, 000,

after the $

3, 000

surrender fee. Which of the following is true?

He can take a capital loss of $

20, 000 .

He can take an ordinary loss of $

20, 000 .

The loss is not deductible.

He can take an itemined deduction of $

23, 000 .

Cody decided to purchase a variable annuity and

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