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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
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Experience:  Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
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IF YOU HAVE AN LLC COMPANY CAN THE COMPANY PAY FOR YOUR LIFE

Resolved Question:

IF YOU HAVE AN LLC COMPANY CAN THE COMPANY PAY FOR YOUR LIFE INSURANCE AND IS IT AN IRS DEDUCTION
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Customer:

Yes,

Customer:

From IRS:

Customer:



Deductible Premiums






You generally can deduct premiums you pay for the following kinds of insurance related to your trade or business.




  1. Insurance that covers fire, storm, theft, accident, or similar losses.




  2. Credit insurance that covers losses from business bad debts.




  3. Group hospitalization and medical insurance for employees, including long-term care insurance.




    1. If a partnership pays accident and health insurance premiums for its partners, it generally can deduct them as guaranteed payments to partners.




    2. If an S corporation pays accident and health insurance premiums for its more-than-2% shareholder-employees, it generally can deduct them, but must also include them in the shareholder's wages subject to federal income tax withholding. See Publication 15-B.






  4. Liability insurance.




  5. Malpractice insurance that covers your personal liability for professional negligence resulting in injury or damage to patients or clients.




  6. Workers' compensation insurance set by state law that covers any claims for bodily injuries or job-related diseases suffered by employees in your business, regardless of fault.




    1. If a partnership pays workers' compensation premiums for its partners, it generally can deduct them as guaranteed payments to partners.




    2. If an S corporation pays workers' compensation premiums for its more-than-2% shareholder-employees, it generally can deduct them, but must also include them in the shareholder's wages.






  7. Contributions to a state unemployment insurance fund are deductible as taxes if they are considered taxes under state law.




  8. Overhead insurance that pays for business overhead expenses you have during long periods of disability caused by your injury or sickness.




  9. Car and other vehicle insurance that covers vehicles used in your business for liability, damages, and other losses. If you operate a vehicle partly for personal use, deduct only the part of the insurance premium that applies to the business use of the vehicle. If you use the standard mileage rate to figure your car expenses, you cannot deduct any car insurance premiums.




  10. Life insurance covering your officers and employees if you are not directly or indirectly a beneficiary under the contract.




  11. Business interruption insurance that pays for lost profits if your business is shut down due to a fire or other cause.



Customer:

here's the link to the IRS guidance on deductible premiums: http://www.irs.gov/publications/p535/ch06.html#en_US_2012_publink1000208842

Customer:

you would deduct this a s a business expenses on your schedule C

Customer:

Hope this helps

Customer:

Lane

Customer:

... still don't see you coming into the chat, soI'll move us to the "Questions & Answer" mode ... Maybe that will help

Customer:

(You can still ask any follow-up questions you need to thre, we just can't talk in real-time as we can here.

Customer:


If this HAS given you enough information, I would appreciate either an “accept” or a feedback rating of 3 (OK) or better. That's the only way they will pay us here. HOWEVER, if you need more on this, PLEASE COME BACK here, so you won't be charged for another question.

Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 4510
Experience: Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
Lane and 6 other Tax Specialists are ready to help you
Expert:  Lane replied 1 year ago.


Thanks so much, Darlene!



To ask for me again, just go here:

And enter your question in the question box

Thanks again,

Lane

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Lane
Lane
JD, MBA, CFP, CRPS
3643 Satisfied Customers
Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986