We have purchased Life insurance paid by my unincorporated business. The premium is quite expensive expensive and I would like to ask you, is this tax deductible?

Also, I may form a C corporation, and am considering making payments from the New C Corporaitons. Is the Life Insurance premium going to be tax deductible when I file my Corporation tax return?

Dear Shabby,

The life insurance premiums paid on behalf of an officer of a Corporation are not deductible for tax return purposes.

They are deducted for books but not for tax purposes and this amount is added back on the M-1 schedule as an ajustment to income.

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Thanks for the reply. At least now I am aware of this.

No problem!