Health insurance covering S corp shareholders.In many solely owned businesses, business owners will purchase health insurance in their own name versus the business' name. The type of entity may greatly affect where this insurance premium expense may be deducted de·duct v. de·duct·ed, de·duct·ing, de·ducts v.tr. 1. To take away (a quantity) from another; subtract. 2. To derive by deduction; deduce. v.intr. on the individual's personal income tax return. Chief Counsel Advice 200524001 held that self-employed self-em·ployed adj. Earning one's livelihood directly from one's own trade or business rather than as an employee of another. self individuals who are sole proprietors and purchase health insurance in their own name can treat that as health insurance purchased in the name of the sole proprietor proprietor n. the owner of anything, but particularly the owner of a business operated by that individual. PROPRIETOR. The owner. (q.v.) business. As such, the insurance would qualify under the provisions of IRC (Internet Relay Chat) Computer conferencing on the Internet. There are hundreds of IRC channels on numerous subjects that are hosted on IRC servers around the world. After joining a channel, your messages are broadcast to everyone listening to that channel. Sec. 162(l). In contrast, if the business is operating as an S corp, there is a different tax consequence if individuals, who are the sole shareholder and sole employee, purchase the health insurance in their own name. Read more at www.irs.gov/businesses/small/article/0,,id=157049,00.html. |
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