Welcome! Log In Create A New Profile Web Site Home
Phorum
This Site is Unauthorized by Farmers Insurance Group. By accessing this site you are agreeing to the Rules/Terms

Advanced

Contract Value

Posted by George 
George
Contract Value
November 07, 2007 06:53PM
Anybody with information on ufaa's seca tax kit and what it offers. No information on IRS site pertaining to treatment of contract value from tax standpoint???

Farmers Insurance Rated Worst Farmers Insurance Sucks T-shirts Farmers Insurance Alternatives

Jim
Re: Contract Value
January 08, 2008 12:27AM
George;
As a Farmers agent for 43 years, I am retiring, and I asked why Farmers didn't
give us any help or advice on how the IRS will treat our contract value payout.
The very simple answer is that we are not employees. They help their employees,
but we are all self employed with a contract to represent the company, much like
any independant agent. An independant agent owns his policyholders. We do not.
Farmers owns the policies. If you were a UFAA member, you might be able to order
their "kit". Sorry UFAA, I get my tax advice from my accountant. If you try to
consider your contract value as a capital gain, you will get screwed by the IRS.
Read section 1402 of the tax code, which deals specifically with insurance agents.
If you receive any EARNED income from any line of business Farmers writes, your
contract value payout will be suject to the self employment tax (social security),
until the total contract value is received. That's 15% I don't want to pay. You can still be an FFS rep, since you are not retiring from that. Your DM will be
the principal. Good luck. Farmers might have their heads in a dark place about some things, but this isn't one of them.

Farmers Insurance Rated Worst Farmers Insurance Sucks T-shirts Farmers Insurance Alternatives

Re: Contract Value
August 31, 2009 02:16PM
How exactly do you report your contract value - what form? I no longer have any income in insurance other than my contract value.

Farmers Insurance Rated Worst Farmers Insurance Sucks T-shirts Farmers Insurance Alternatives

J
Re: Contract Value
January 15, 2010 04:18PM
How do you determine your start date with Farmers-I think my career was February 2004. Is it the date you converted to a career agent or when you signed as a reserve? I am trying to determine when I reach my 6 years and I can sell the agency back to Farmers for 100% of my contract value.

Thanks

Farmers Insurance Rated Worst Farmers Insurance Sucks T-shirts Farmers Insurance Alternatives

Ben
Re: Contract Value
April 11, 2010 11:09AM
I am confused. Since you are considered an independent contracter you would receive a 1099 from Farmers. Are they not paying out your contract and is this not considered a capitol gain. You would need to find other loop holes like selling it to a family member and then having them pay you back smaller amounts annually. This does not avoid capital gains but it does lower the amount you have to give in a particular year to the IRS.

Farmers Insurance Rated Worst Farmers Insurance Sucks T-shirts Farmers Insurance Alternatives

Author:

Your Email:


Subject:


Spam prevention:
Please, enter the code that you see below in the input field. This is for blocking bots that try to post this form automatically.
VKNFn
Message:
This is a moderated forum. Your message will remain hidden until it has been approved by a moderator or administrator

Copyright 2005 -  FarmersInsuranceGroupSucks.com - All Rights Reserved 
This site is published as a public service to warn consumers of the business practices of Farmers Insurance Group.  This site is in no way affiliated, connected with, or sponsored by Farmers Insurance Group or any of its subsidiaries. All content and information on this site is my opinion or the opinion of those referenced. This site is for educational purposes. The information in the Complaints section or from other people, blogs or web sites  are provided at face value, we have not confirmed  any of these stories/opinions.  We are not responsible for accuracy in story content. Copyrighted material has been used for non-commercial purposes only.  By accessing this site you agree to immediately contact us to report any incorrect data or misrepresentations of facts. Links to any other sites are for informational purposes only and should not be considered an endorsement of the site.