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	<title>New answer on: When Is Life Insurance Deductible As An Expense To A Business?</title>

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		<title>By: Dmitriy Glazer</title>

		<link>https://insurancelibrary.com/life-insurance/when-is-life-insurance-deductible-as-an-expense-to-a-business</link>

		<dc:creator>Dmitriy Glazer</dc:creator>

		<pubDate>Thu, 07 Nov 2013 00:33:32 +0000</pubDate>

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		<description><![CDATA[In order to get the most up to date answer to this question refer to IRS Publication 535 (2012) - that describes business expenses.
As of the day when I type this answer, you generally can deduct premiums you pay for the life insurance covering your officers and employees if you are not directly or indirectly a beneficiary under the contract.
However, you cannot deduct premiums on the certain life insurance and annuities:
 
- For contracts issued before June 9, 1997, you cannot deduct the premiums on a life insurance policy covering you, an employee, or any person with a financial interest in your business if you are directly or indirectly a beneficiary of the policy. You are included among possible beneficiaries of the policy if the policy owner is obligated to repay a loan from you using the proceeds of the policy. A person has a financial interest in your business if the person is an owner or part owner of the business or has lent money to the business.
 
- For contracts issued after June 8, 1997, you generally cannot deduct the premiums on any life insurance policy, endowment contract, or annuity contract if you are directly or indirectly a beneficiary. The disallowance applies without regard to whom the policy covers.
 
Partners. If, as a partner in a partnership, you take out an insurance policy on your own life and name your partners as beneficiaries to induce them to retain their investments in the partnership, you are considered a beneficiary. You cannot deduct the insurance premiums.]]></description>

		

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