1. 61667 POINTS
    Steve SavantPRO
    Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
    In scenarios where executive benefits are a recruiting and retention feature of the company, disability insurance can be a significant key person employee perk. The disability insurance premium can be expensed as a legitimate tax deduction to the company. But if benefits are generated to the executive, the income is taxed as oridanry income at the executive's effective tax bracket.
    Answered on August 18, 2013
  2. 2180 POINTS
    Kelly MoserPRO
    Social Media Strategist, Disability Insurance Services, California
    This is a very interesting question, because on the surface, it appears as though the original poster is not very clear on the actual business entity.  I can only assume that he is referring to a C-corporation.  If that is the case, then I would absolutely agree with Mr. Savant's eloquent response.  However, if the corporation is an LLC or an S-Corporation, then please know that the premiums on a shareholder are not deductible.
    Answered on August 19, 2013
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