I've often heard about the taxability of life insurance proceeds. I'm not a businessman, but I'd like to know about the effects of various other policies on my taxes.
Total Comments: 8
Posted: Wed Jul 28, 2010 12:08 pm Post Subject:
If you're not using your property for business purposes it's a different thing- your premiums won't be considered as deductible. Your claims proceeds aren't usually taxable.
Posted: Thu Jul 29, 2010 10:01 am Post Subject:
Your auto insurance premiums won't be considered as deductible if you don't use your car for business purposes. If you're gonna use your car for personal reasons (excepting business) and pay your taxes in time, then you won't have any deduction.
Posted: Fri Jul 30, 2010 07:49 am Post Subject:
Your carrier might pay towards claims out of car replacement or repair as a result of damages or theft. Such benefits are non-taxable for you.
Posted: Sat Jul 31, 2010 01:54 pm Post Subject:
Well, another thing that comes to mind is disability insurance. Even if you're a non-business taxpayer, you'd certainly need to keep an eye at this one. Remember, that if you're gonna use your after-tax dollars for meeting your disability premiums, you could rest assured that your premiums won't be taken as deductible.
Posted: Sun Aug 01, 2010 03:18 am Post Subject:
There wouldn't be a taxable issue with other policies. You pay your premiums with after tax dollars, you reveive a benefit with no taxable implication.
You could potentially deduct disability insurance premium under certain circumstances, which would then make the benefit paid under that policy taxable.
There is a way to make taxable life insurance benefits, a bunch of ways actually, but in most circumstances it's not something to worry about.
The original question is way to vague to get an answer that will be anywhere near usable. If you have a specific insurance product, or specific list to discuss, we could do down that road. But as a non business owner as you've mentioned, there isn't anything that you'd likely be doing that would create a taxable consequence with any of your insurance policies.
Posted: Tue Aug 03, 2010 06:46 am Post Subject:
Hey BNTRS, thanks for such valuable information!
I'm sure it would also help if you can show us through circumstances that lead us to deduct disability insurance premiums. See, if you can share some instances.
Posted: Fri Jan 21, 2011 08:51 pm Post Subject:
My dog was hit by a car and the car owners insurance is paying the vets bill. Are these payments to my vet taxable to me?
Posted: Wed Jul 28, 2010 12:08 pm Post Subject:
If you're not using your property for business purposes it's a different thing- your premiums won't be considered as deductible. Your claims proceeds aren't usually taxable.
Posted: Thu Jul 29, 2010 10:01 am Post Subject:
Your auto insurance premiums won't be considered as deductible if you don't use your car for business purposes. If you're gonna use your car for personal reasons (excepting business) and pay your taxes in time, then you won't have any deduction.
Posted: Fri Jul 30, 2010 07:49 am Post Subject:
Your carrier might pay towards claims out of car replacement or repair as a result of damages or theft. Such benefits are non-taxable for you.
Posted: Sat Jul 31, 2010 01:54 pm Post Subject:
Well, another thing that comes to mind is disability insurance. Even if you're a non-business taxpayer, you'd certainly need to keep an eye at this one. Remember, that if you're gonna use your after-tax dollars for meeting your disability premiums, you could rest assured that your premiums won't be taken as deductible.
Posted: Sun Aug 01, 2010 03:18 am Post Subject:
There wouldn't be a taxable issue with other policies. You pay your premiums with after tax dollars, you reveive a benefit with no taxable implication.
You could potentially deduct disability insurance premium under certain circumstances, which would then make the benefit paid under that policy taxable.
There is a way to make taxable life insurance benefits, a bunch of ways actually, but in most circumstances it's not something to worry about.
The original question is way to vague to get an answer that will be anywhere near usable. If you have a specific insurance product, or specific list to discuss, we could do down that road. But as a non business owner as you've mentioned, there isn't anything that you'd likely be doing that would create a taxable consequence with any of your insurance policies.
Posted: Tue Aug 03, 2010 06:46 am Post Subject:
Hey BNTRS, thanks for such valuable information!
I'm sure it would also help if you can show us through circumstances that lead us to deduct disability insurance premiums. See, if you can share some instances.
Posted: Fri Jan 21, 2011 08:51 pm Post Subject:
My dog was hit by a car and the car owners insurance is paying the vets bill. Are these payments to my vet taxable to me?
Posted: Wed Feb 02, 2011 11:21 am Post Subject:
To you, no. To the Vet, yes.
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