health-insurance premiums deductible? -- self employed

#6 02-26-2004, 05:12 PM

- quote -

> > > > > An article in the WSJ today says:
> > > > > > > > > "Another big change this year is for self-employed
> > > > > individuals. For 2003, they can take an above-the-line
> > > > > deduction for as much as 100% of the cost of their
> > > > > health-insurance premiums, up from 70% last year."

> > > I just want to add that IRS is advising that this insurance
> > > must be biz class health insurance that would cover all
> > > eligible employees of the Schedule C biz.
> > > > > That said, it has been pointed out that there is no case law
> > > on this and that the code does not seem to read that way.

> > What if there are no employees - just the self-employed
> > individual working independently? Can she deduct the cost of
> > an ordinary personal health insurance policy?

> Per the IRS reps I have spoken with, no. I presented just
> that situation to them. Again however, I have not been
> shown or found any specific code or case law that supports
> that interpretation.

Moral of the story: Don't ask IRS! (grin)

Actually I somewhat serious about this, since so many times the
telephone assisters don't know what they're talking about.

Cheer$,
Harlan Lunsford, EA n LA

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#5 02-26-2004, 04:52 PM

- quote -

> > > > An article in the WSJ today says:
> > > > > > > "Another big change this year is for self-employed
> > > > individuals. For 2003, they can take an above-the-line
> > > > deduction for as much as 100% of the cost of their
> > > > health-insurance premiums, up from 70% last year."

> > I just want to add that IRS is advising that this insurance
> > must be biz class health insurance that would cover all
> > eligible employees of the Schedule C biz.
> > > That said, it has been pointed out that there is no case law
> > on this and that the code does not seem to read that way.

> What if there are no employees - just the self-employed
> individual working independently? Can she deduct the cost of
> an ordinary personal health insurance policy?

Yes, deduct your personal health insurance policy premium.
That's what the deductions was designed for. You just have
to decide WHICH business it is "established under" if you
have more than one, and have to pay the premium for an
employee when and if you get one or more. ed

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#4 02-25-2004, 03:43 PM

- quote -

> > > > An article in the WSJ today says:
> > > > > > > "Another big change this year is for self-employed
> > > > individuals. For 2003, they can take an above-the-line
> > > > deduction for as much as 100% of the cost of their
> > > > health-insurance premiums, up from 70% last year."

> > I just want to add that IRS is advising that this insurance
> > must be biz class health insurance that would cover all
> > eligible employees of the Schedule C biz.
> > > That said, it has been pointed out that there is no case law
> > on this and that the code does not seem to read that way.

> What if there are no employees - just the self-employed
> individual working independently? Can she deduct the cost of
> an ordinary personal health insurance policy?

Per the IRS reps I have spoken with, no. I presented just
that situation to them. Again however, I have not been
shown or found any specific code or case law that supports
that interpretation.

bex

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

#3 02-25-2004, 03:24 PM

- quote -

> > > > An article in the WSJ today says:
> > > > > > > "Another big change this year is for self-employed
> > > > individuals. For 2003, they can take an above-the-line
> > > > deduction for as much as 100% of the cost of their
> > > > health-insurance premiums, up from 70% last year."

> > I just want to add that IRS is advising that this insurance
> > must be biz class health insurance that would cover all
> > eligible employees of the Schedule C biz.
> > > That said, it has been pointed out that there is no case law
> > on this and that the code does not seem to read that way.

> What if there are no employees - just the self-employed
> individual working independently? Can she deduct the cost of
> an ordinary personal health insurance policy?

Yes.

Cheer$,
Harlan Lunsford, EA n LA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

#2 02-24-2004, 08:33 AM

- quote -

> > > An article in the WSJ today says:
> > > > > "Another big change this year is for self-employed
> > > individuals. For 2003, they can take an above-the-line
> > > deduction for as much as 100% of the cost of their
> > > health-insurance premiums, up from 70% last year."

> I just want to add that IRS is advising that this insurance
> must be biz class health insurance that would cover all
> eligible employees of the Schedule C biz.
> That said, it has been pointed out that there is no case law
> on this and that the code does not seem to read that way.

What if there are no employees - just the self-employed
individual working independently? Can she deduct the cost of
an ordinary personal health insurance policy?

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

#1 02-23-2004, 03:43 PM

"D. Stussy" <kd6lvw[at]bde-arc.ampr.org> wrote:
- quote -

> Sharon Everett wrote:

> > An article in the WSJ today says:
> > > "Another big change this year is for self-employed
> > individuals. For 2003, they can take an above-the-line
> > deduction for as much as 100% of the cost of their
> > health-insurance premiums, up from 70% last year."
> > > What are the limitations on this? It sounds too good to be
> > true for me. Thanks for any help.

> Still limited by a net profit from the activity.

I just want to add that IRS is advising that this insurance
must be biz class health insurance that would cover all
eligible employees of the Schedule C biz.

That said, it has been pointed out that there is no case law
on this and that the code does not seem to read that way.

bex

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

02-21-2004, 11:36 PM

Sharon Everett wrote:

- quote -

> An article in the WSJ today says:
> "Another big change this year is for self-employed
> individuals. For 2003, they can take an above-the-line
> deduction for as much as 100% of the cost of their
> health-insurance premiums, up from 70% last year."
> What are the limitations on this? It sounds too good to be
> true for me. Thanks for any help.

Still limited by a net profit from the activity.

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#-1 02-19-2004, 04:10 PM

An article in the WSJ today says:

"Another big change this year is for self-employed
individuals. For 2003, they can take an above-the-line
deduction for as much as 100% of the cost of their
health-insurance premiums, up from 70% last year."

What are the limitations on this? It sounds too good to be
true for me. Thanks for any help.

Sharon Everett

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

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