There seem to be two theories on claiming losses on the surrender of variable annuities. The conservative one says to take them on Sched A subject to 2%, and the more aggressive to take them on 4797 and lowering AGI in full. Rev Ruling 61-201 and 72-193 are referenced, and I have read them both, but they are each slightly off point.
Do any of you have experience with claiming these losses, and can you share what you thinking and decision was?