Can Long-Term Care Insurance Be Deducted by S-Corp?

by New Jersey Long Term Care Insurance on August 13, 2011

Can long-term care insurance be deducted on behalf of the owner by S-Corp?

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Hank Roitman, EA August 31, 2010 at 11:17 pm: If we are talking about a greater than 2% owner, then LTC gets the same treatment as Health Insurance.

It is not deducted by the S-Corp as an expense. Instead, it is deducted on the >2% S/holder’s form 1040 as an adjustment to income. The deduction for S/E health insurance and/or LTC is limited to the S/holder’s compensation forom the S-corp.

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