### Question
How is the "adjusted cash value" defined?


### Answer
The term **adjusted cash value** is defined in *26 U.S.C. § 805* as follows -

> the cash surrender value of the policy or contract increased by the sum of—


(I) commissions payable with respect to such policy or contract for the taxable year, and


(II) asset management fees, surrender charges, mortality and expense charges, and any other fees or charges specified in regulations prescribed by the Secretary which are imposed (or which would be imposed were the policy or contract canceled) with respect to such policy or contract for the taxable year

#### Citation:
  - *26 U.S.C. § 805*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter L-Insurance Companies > PART I-LIFE INSURANCE COMPANIES > Subpart C-Life Insurance Deductions**

