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Yes, its a deductible expense. However, if you ever collect benefits under the plan, they will be taxable. If the disability insurance is provided on an after-tax basis (i.e. by including the cost of the premium in your salary), then the benefits paid would be tax-free.
Because it is impossible for me to identify and consider ALL the relevant facts, this advice is not intended or written to be used for the purpose of avoiding penalties, and cannot be used for that purpose.
If your self-employed (i.e. sole proprietorship/partnership/S corp more then 2% shareholder) then its not going to be deductible. If your an employee of a C corporation then you may offer it as a tax-free fringe benefit to all employees, including yourself (although benefits paid would be taxable).
I should have pointed that out in my previous post.
You may deduct disability insurance premium payments made for partnership employees. The same goes for S Corps.
A S corp could deduct disability insurance premiums for employee's who are not more then 2% shareholders. More then 2% shareholders are treated the same as partners in partnerships.
Unless you are working in a temporary location away from your regular home for business purposes and your temporary assignment is expected to last less then one year, then your extended stay residence expenses are non-deductible.