We have an llc (2 member, my wife and I) set up to hold our real estate asset (condo). It has been a year, now. First year we did some rehab but this year we will accrue some cash and next year even better. In other words, starting to make a little money. This is in California, if it matters (I assume not).
Our question is about health insurance premiums. We'd like to deduct this expense or whatever we can and are not sure how to properly do so or what amount we can do this. For example, if we clear 1000 a month and our combined premiums are 500, we assume we do NOT expense this as a normal business expense, but rather against our personal profit at the end of the year? Or how does this work? What is the effective actual benefit we will receive, just so that I understand it?
THANK YOU folks, we have to make some decisions on which plan, etc, ASAP and our accountant is not available right away
though I assume he will have a chance to look this over - I just need to understand the principal and such.