Can You Deduct Life Insurance as a Business Expense?
When discussing life insurance, it is not something you commonly can deduct as a business expense. The reason being is that it is generally for the benefit of your spouse or children after our passing. Though there exists some exceptions to this notion.
For example, if one’s business uses an insurance policy as a collateral for a loan, it would then be possible to use a portion of the premium paid as a tax deduction.
However, due to the surrounding lack of clarity on whether or not one should deduct life insurance, it is always better to remain on the side of caution and contact a professional accountant if you have any reservations.
For more in depth questions, contact BBS Accounting Services with any inquiries or concerns that you may possess.