Accounting Services For Small Businesses – Death benefits paid on a life insurance policy are not taxable if proceeds are paid by reason of the death of the insured. No deduction is allowed by a taxpayer for life insurance premiums if the taxpayer is the beneficiary of the policy. If an employer is providing the cost of life insurance as a fringe benefit for employees, the cost is deductible if it is reasonable compensation to the employee.
Amare Berhie, Enrolled Agent
Licensed
by the IRS
amare@abataxaccounting.com
651-300-4777
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