Hi @BIGCATWOW,
Once the deductible amount for the undeducted purchase price (UPP) of a foreign annuity has been determined, it’s applied on an annual basis. In each income year, the deduction you can claim is limited to the amount of annuity income you actually include in your tax return for that year.
If the deductible amount is greater than the annuity income received in that year, the deduction is limited to the income received. Any remaining UPP is applied against annuity income in later years. The deductible amount isn’t apportioned or recalculated based on the number of payments received.
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