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Can a C corporation deduct health insurance premiums for a…

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Can a C corporation...

Can a C corporation deduct health insurance premiums for a sole shareholder/employee even if no salary is pay due to low taxable income?

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

C Corp has fluctuating income. Most years near break even income. 2016 had income of $200k & distributed $112K treated as wages & paid $15K health insurance for sole owner/sole employee. Doesn't expect much income in 2017/2018. Can the C Corp continue to deduct health insurance even if no salary is paid in future years?

Accountant's Assistant: Is there anything else the Accountant should be aware of?

Don't think so.

Submitted: 7 months ago.Category: Tax
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Answered in 13 minutes by:
12/6/2017
Tax Professional: Barbara, Enrolled Agent replied 7 months ago
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,361
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Owners of a C corporation can receive health coverage on a tax-free basis. The corporation can fully deduct its premiums. The premiums are not included in the stockholder's w-2 as payroll and /or fringe benefits.

Please let me know if I can assist you further.

Thank you and best regards,

Barb

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Tax Professional: Barbara, Enrolled Agent replied 7 months ago

Just following up with you to see if you have any other questions/concerns. If so, please let me know so I can continue to assist you.

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