Disability insurance - Sch C

[KJ Judd]

Client asked if he can deduct his disability insurance as a business expense now that he is a Schedule C sole proprietor. I believe the answer is no, but I can't seem to find it anywhere.

Also, if he could deduct it, then if he ever collected it would be taxable to him, correct?

[Brad Imsdahl]

TTB, page 8-7 under "Nondeductible insurance premiums," it lists "loss of earnings policy that pays for the taxpayer's lost earnings due to sickness or disability. However, see overhead insurance above (eighth bullet under deductible insurance)."

[ChEAr$]

Agree

Client asked if he can deduct his disability insurance as a business expense now that he is a Schedule C sole proprietor. I believe the answer is no, but I can't seem to find it anywhere.

Also, if he could deduct it, then if he ever collected it would be taxable to him, correct?

And would he even remember to report it? And how would insurance company
know to issue a form?

non deductible.

Holiday ChEAr$,
Harlan Lunsford, EA n LA