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by mbscpa » Tue Dec 28, 2010 08:53 pm
Posts: 2
Joined: 28 Dec 2010

Are the proceeds from the policy taxable to the corporation?

Total Comments: 3

Posted: Wed Dec 29, 2010 01:22 am Post Subject:

It's income... so yes.

Posted: Wed Dec 29, 2010 01:56 pm Post Subject:

Are the proceeds from the policy taxable to the corporation?


It's income... so yes.



Not so fast! If we're talking about Corporate Owned Life Insurance, or any other form of insurance for which the company has paid premiums with AFTER TAX money -- something for which they have not claimed a deduction -- then the answer is NO, IT IS NOT TAXABLE because IT IS NOT CONSIDERED INCOME.

Please provide more information about the nature of the loss and the type of insurance that is involved. There are very few circumstances in which insurance claims payments are taxable.

Posted: Wed Dec 29, 2010 02:09 pm Post Subject:

How I read it was as the company collecting a premium for an auto policy (as it's in the auto section) and the person asked if they were taxable to the "corporation".

I'm giving up on guessing what people mean when they can't even explain it very well or post it in the proper section.

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