Life Insurance Premium Deduction for C-Corporation

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Subject Author Date Life Insurance Premium Deduction for C-Corporation taxingmatters 09-23-2009  Re: Life Insurance Premium Deduction for C-Corpora... Bill Brown 09-23-2009  Re: Life Insurance Premium Deduction for C-Corpora... Stuart A. Bronstein 09-23-2009
Posted by taxingmatters on September 23, 2009, 3:25 pm Please log in for more thread options Are the premiums paid by a C-Corporation for life insurance on the life of the "owner" who is also an employee deductible by the C- Corporation if the corporation is named as beneficiary on the policy. Are the premium amounts considered dividends by the "owner-employee". Your help is greatly appreciated. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Bill Brown on September 23, 2009, 8:42 pm Please log in for more thread options On Sep 23, 3:25 pm, taxingmatt...@zoominternet.net wrote: > Are the premiums paid by a C-Corporation for life insurance on the > life of the "owner" who is also an employee deductible by the C- > Corporation if the corporation is named as beneficiary on the policy. No. > Are the premium amounts considered dividends by the "owner-employee". > Not if the corporation is the owner and the beneficiary of the policy. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Stuart A. Bronstein on September 23, 2009, 10:00 pm Please log in for more thread options > On Sep 23, 3:25 pm, taxingmatt...@zoominternet.net wrote: >> Are the premiums paid by a C-Corporation for life insurance on >> the life of the "owner" who is also an employee deductible by >> the C- Corporation if the corporation is named as beneficiary >> on the policy. > > No. On the plus side, there is no income tax to the corporation (assuming it's the owner and beneficiary of the policy) on the death benefit. However if the money is distributed to the employee's family, it is taxed. (There used to be a $5,000 exemption for this - is it still there?) -- Stu http://downtoearthlawyer.com -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted Single Premium Insurance Tax Question May 21, 2008, 8:51 pm Self-Employed Health Insurance Premium Reimbursement April 15, 2008, 2:03 am Health Savings Account Distribution for Insurance Premium December 27, 2007, 6:52 pm does payment of health insurance premium by company = employee compensation November 10, 2006, 2:02 am tax on life insurance January 3, 2007, 10:49 pm Life insurance proceeds September 20, 2007, 4:48 pm life insurance ownership November 15, 2007, 3:01 pm Interest on Life Insurance January 22, 2009, 6:35 pm Re: Life insurance benefit/ gift January 5, 2007, 8:05 am Taxable Life Insurance Dividends May 17, 2008, 9:12 pm