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https://myboyum.com/business-tax/officer-life-insurance/
The officer life insurance premiums are not deductible so they are backed out as a “book expense not deductible”. Then the proceeds would be recorded as “book income not taxed”. In recent years the IRS came out with Form 8925 to report more information on life insurance contracts.
https://pocketsense.com/officer-life-insurance-deductible-8558318.html
Officer and employee life insurance are deductible to the company if the officers and employees themselves are the beneficiaries. However, this doesn't provide any financial benefit for the company in the event of a death. If the company itself is a beneficiary under the contract, the premiums are not deductible.
https://affordablelifeusa.com/tax-deductible-life-insurance/
The premiums you pay for life insurance policies intended to provide for your family in the event of your death are not tax-deductible, even if you pay the premiums from your business checking account. However, if you have a life insurance policy for protecting your business assets, life insurance premiums are tax-deductible.
https://www.justanswer.com/tax/1kzpq-life-insurance-corporate-officer-tax-deductible.html
How much money can I spend on personal life insurance, in terms of PREMIUMS that can be declared as a tax deduction as a sub chapter s corp. Some agents insist that I can deduct up to $50,000.00 yearl … read more. Anne. Master Tax Preparer. 2,601 satisfied customers. I currently am a part owner of an S Corporation.
https://www.lifeant.com/can-i-claim-life-insurance-as-a-business-expense/
Therefore, it can be tax-deductible. For employees and officers of a business, if the premiums of a life insurance policy are paid for directly by the company, and the company is not a beneficiary (either direct or indirect), the premiums can be deducted as long as the death benefit is for the benefit of the employees.
https://bizfluent.com/info-7899714-life-premiums-tax-deductible-corp.html
Life Insurance Premiums as Taxable Wages Most of the time, any life insurance premiums paid on behalf of S corporation employees aren't taxable to the employee. Like health insurance benefits, the S corporation can exclude them from the wages section of the employee's W-2. There are a few notable exceptions to this rule.
https://www.thetaxadviser.com/issues/2016/apr/life-insurance-and-s-corporation-rules-present-opportunity-and-peril.html
Therefore, an S corporation that chooses to purchase term life insurance on key employees and/or owners receives no current tax deduction when it pays the premiums, but the death benefits will be tax-free when the insured dies.
https://www.journalofaccountancy.com/issues/2000/jan/companyownedlifeinsurance.html
deduction is allowed for interest paid or accrued on any debt with respect to company-owned life insurance policies covering current or former officers or employees of any current or former trade or business carried on by the company or any individual with a financial interest in such trade or business. Key persons.
https://www.law.cornell.edu/cfr/text/26/1.264-1
premiums paid by a taxpayer on a life insurance policy are not deductible from the taxpayer 's gross income, even though they would otherwise be deductible as trade or business expenses, if they are paid on a life insurance policy covering the life of any officer or employee of the taxpayer, or any person (including the taxpayer) who is …
https://www.insurist.com/life-insurance/are-life-insurance-premiums-a-deductible-business-expense/
Only the first $50,000 of premiums paid are deductible. Anything after that is no longer deductible. For C Corporations, premiums aren’t a deductible expense if shareholders have policies through the company and the company is the beneficiary. In this situation, the life insurance benefit is also a taxable fringe benefit.
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