Is Disability Insurance Deductible By A Corporation?
61667 POINTSview profileSteve SavantSyndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale ArizonaIn 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, 2013flag this answer
2180 POINTSview profileKelly MoserSocial Media Strategist, Disability Insurance Services, CaliforniaThis 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, 2013flag this answer
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