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Tax Law (Questions About Taxes)/Officer Life Ins Prems 1120s

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Question
When preparing form M-2 for a S-corp, in which column do you show officer life insurance premiums paid by the S corp, Col a or b?

Answer
Life insurance premiums are generally not business deductions.
If you are referring to Schedule M-2 "Analysis of Unappropriated Retained Earnings per Books"

A life insurance payment is not "retained" nor is it an "earning".

Unappropriated retained earnings are those profits (not distributed) that the corporation has no specific need for.

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Richard Fritzler
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Tax Law (Questions About Taxes)

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Richard Fritzler

Expertise

Specializing in Business and Corporate taxation. Comparing the advantages and requirements of different business entities, such as Sub-S Corporations, LLC`s, Partnerships (Both Limited and General), Doing Business as a Sole Proprietor, or Using a C-Corporation. Issues regarding K-1 distributions, 1040, schedule C, 1120, 1120s. Are you considering domiciling a Corporation in a low tax state? I can review the benefits and misinformation that exists.

Experience

I have been in the business of assisting business owners in reducing their taxes and liability since 1986.

Organizations
National Small Business Owners Association.
Publications
Contributing author to "The Corporate Standard Newsletter".


Publications
Contributing author to "The Corporate Standard Newsletter".
Ezinearticles.com articlesbase.com

Education/Credentials
I have been in the business of assisting business owners in reducing their taxes and liability since 1986.

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