Special Tax Considerations for the Business Use of Insurance
What are special tax considerations for the business use of insurance?
Businesses use insurance for a variety of purposes: to fund buy-sell agreements, to fund retirement plans, as an employee benefit, to protect against the loss of key personnel, to protect buildings and property from casualty losses and other damage, and to protect against liability exposure. Insurance can be expensive, and financial considerations are certainly important. But if you want to purchase insurance protection for your business, you should become familiar with the tax implications of this coverage as well.