Discussion:Rev Rul 2008-42--S corps and officers' life insurance...
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Revision as of 12:15, 14 August 2008
Discussion Forum Index --> Basic Tax Questions --> Rev Rul 2008-42--S corps and officers' life insurance...
Discussion Forum Index --> Tax Questions --> Rev Rul 2008-42--S corps and officers' life insurance...
| 14 August 2008 | |
| According to Rev Rul 2008-42, 2008-30 IRB, life insurance premiums paid by an S Corporation on a contract it owns, and which is a beneficiary, do not reduce its AAA. What about life insurance premiums an S Corporation pays on a contract it doesn't own and is not the beneficiary? Would it be more technically correct to consider these dividends to the shareholder (since it is his life insurance contract personally and his family is the beneficiary) or should it an M-1 adjustment--both which would reduce AAA. Or would it be more correct to book it as a loan to shareholder?
Here is a link to Rev Rul 2008-42 http://www.legalbitstream.com/scripts/isyswebext.dll?op=get&uri=/isysquery/irl3b/1/doc | |
