Discussion:LLC and Life Insurance
From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Tax Questions --> LLC and Life Insurance
| 28 October 2006 | |
| LLC owns a life insurance policy on a person who owes the LLC a debt. Debt has been basically in default for 12 years and per court judgment is now $60,000. Insured person is not an employee, not an LLC member, not related to a member, etc. Just your basic debtor who secured a debt by signing over the insurance policy to LLC.
LLC listed as policy owner and beneficiary of $100k policy. LLC has made all premium payments for last 12 years. Debtor died. Policy proceeds taxable? | |
Michaelstar (talk|edits) said: | 28 October 2006 |
| If you deducted the insurance payments - you bet - but without any research - you have $60K to offset the $100k for a net $40k in income. | |
| 28 October 2006 | |
| faulty memory thinks specifics matter. Policy had value when signed over. Proceeds of a life insurance policy turned over for a price...Publication 525 | |
| 28 October 2006 | |
| <Policy had value when signed over>
Don't think it had any value. Policy was taken out and signed over as a condition of loan? Doubt policy had value in its first or second year. LLC has not deducted any insurance premiums paid. | |
To join in on this discussion, you must first
log in.
