Tax Facts

8775 / Can an employee of a sole proprietor deduct life insurance premiums the sole proprietor pays to insure the life of the sole proprietor?

Updated: December 30, 2024 at 07:44 AM
No. The premiums are nondeductible because they either are personal expenses or expenses allocable to tax-exempt income (the death proceeds).1





1.  IRC §§ 262(a), 265(a)(1); see Whitaker v. Commissioner, 34 TC 106 (1960).

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