Insurance

Accounting Services For Small Businesses – Insurance premiums (e.g., hazard, medical, liability, malpractice, etc.) paid for a trade or business are generally deductible.

 

Nondeductible insurance premiums include:

• Amounts paid into a self-insurance reserve fund even if the taxpayer cannot get business insurance coverage for certain business risks.
• Loss of earnings policy that pays for the taxpayer’s lost earnings due to sickness or disability. However, premiums for overhead insurance that pays for business overhead expenses during long periods of disability caused by the taxpayer’s injury or sickness are deductible.
• Life insurance and annuities if the taxpayer is directly or indirectly a beneficiary of the policy.
• Insurance to secure a loan.

 Need More Information?

ABA Tax Accounting

Amare Berhie, Enrolled Agent

Licensed by the IRS

amare@abataxaccounting.com

651-300-4777

 

https://www.abataxaccounting.com/smallbiz.php