Is Disability Insurance A Business Deduction?
61667 POINTSview profileSteve SavantSyndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale ArizonaThere are rules that the Internal Revenue Service use in the business expensing or tax destructibility of disability insurance premiums. If your business meets those requirements, you may deduct disability insurance premiums. But keep in mind that any benefit distributions are taxable at ordinary income tax rates at the effective tax bracket of the policy owner.Answered on August 6, 2013flag this answer
10968 POINTSview profileTim WilhoitOwner, Your Friend 4 Life, Brentwood TNThe basic rule of thumb about tax deductibility on disability insurance premiums for a business boils down to one thing. The business can deduct for premiums paid on the employees but not the owner. The exception is if the business is incorporated and the owner is considered an employee of the business. Then yes all premiums will be tax deductible, but any paid benefits will be taxed as ordinary income.Answered on November 21, 2014flag this answer
Did you find these answers helpful?
Yes
No
Go!
Add Your Answer To This Question
You must be logged in to add your answer.
.JPG){kind=avatar}
