Disability Insurance Fringe benefit-S-Corp Owner

Technical topics regarding tax preparation.
#1
CDCPA  
Posts:
22
Joined:
9-Mar-2017 1:23pm
Location:
Florida
An S-Corp owner is the sole employee of their corporation. They pay disability insurance personally-it is not paid through a business plan.

IRS has specific rules on deductibility of disability insurance, but I cannot find an example where the policy is paid individually and is used in the business. Even if we run it through payroll as a taxable fringe benefit (as a reimbursement to the owner for business expense paid personally), how would the plan be marked to only distribute non-taxable benefits to the owner?

Another question - if the owner has been paying for their personal disability insurance policy personally, how would the plan differentiate between what was paid personally versus what was run through as a fringe benefit?

It seems we'd need to have the client setup a new plan that runs through the business. Any other thoughts?

Thank you all in advance!
 

Return to Taxation



Who is online

Users browsing this forum: ajt1970, artp, dellpaul, deniz, eric1032, Frankly, Google [Bot], Google Adsense [Bot], GSTaxTalk, JAD, JoJoCPA, MAPCPA60, SALYstrikesagain, Seaside CPA, TheGrog, wallbobbyc and 204 guests