457. Does the presence of a long-term care rider to an annuity contract impact the calculation of investment in the contract for purposes of the annuity rules?Stevenrcline202015-04-28T17:57:00Z2015-04-28T17:57:00Z1132759Summit Business Media6189014Site Map/Annuities/Nonqualified/Amounts Received as an Annuity/Fixed Annuities/Basic Rulebasis2005-01-24T00:00:00ZTaxFactsDefaultArticleSite Map/Annuities/Quick Clicks/Exclusion Ratio10008-00-TF1.xml8.00;#1579;#1594;#0x010100C568DB52D9D0A14D9B2FDCC96666E9F2007948130EC3DB064584E219954237AF3900242457EFB8B24247815D688C526CD44D009C4E67E972694125ABDA91AC61F5E51FTax Facts 1How do you determine the investment in the contract for purposes of the annuity rules?1263118100.000000000TaxFactsDefaultArticle2010-01-19T08:05:10ZSBMEDIA\moss-admin457. Does the presence of a long-term care rider to an annuity contract impact the calculation of investment in the contract for purposes of the annuity rules?For contracts issued after 1996, but only for tax years after 2009, a charge against the cash surrender value of an annuity contract or life insurance contract for a premium payment of a qualified long-term care contract (Q 424) that is a rider to the annuity or life insurance contract reduces the investment in the contract of the annuity or life insurance contract. This charge against the cash surrender value, however, does not cause the taxpayer to recognize gross income (because it is applied against the cost basis)..IRC Sec. 72(e)(11). On the other hand, such charges are also not eligible for a medical expense deduction under Section 213(a)..IRC Sec. 7702B(e)(2).