Ok, maybe things change over the years and it has been a long time since I was active in life insurance.
Back when I was active in life sales there were times that companies tried to deduct individual life insurance premiums from taxes. If I remember it was IRS publication 529 that spelled out premiums on individual policies were never a deductible expense, it didn't matter if required by contract or any other circumstances.
So today I met with two owners that want to buy life insurance for a buy sell. I felt that life premiums are not deductible but the attorney thought they could be deductible. The attorney is going to investigate....I guess he wasn't 100% sure about it.
Tax law does change and I am wondering if deductibality of premiums has changed? I am thinking (yes I know proceeds can be included for estate tax calculations) if proceeds are tax free, premiums are not going to be a deductible item.
Has my brain forgotten or have tax laws changed?
Back when I was active in life sales there were times that companies tried to deduct individual life insurance premiums from taxes. If I remember it was IRS publication 529 that spelled out premiums on individual policies were never a deductible expense, it didn't matter if required by contract or any other circumstances.
So today I met with two owners that want to buy life insurance for a buy sell. I felt that life premiums are not deductible but the attorney thought they could be deductible. The attorney is going to investigate....I guess he wasn't 100% sure about it.
Tax law does change and I am wondering if deductibality of premiums has changed? I am thinking (yes I know proceeds can be included for estate tax calculations) if proceeds are tax free, premiums are not going to be a deductible item.
Has my brain forgotten or have tax laws changed?
Last edited: