Are the premiums paid by a C-Corporation for life insurance on the life of the "owner" who is also an employee deductible by the C- Corporation if the corporation is named as beneficiary on the policy. Are the premium amounts considered dividends by the "owner-employee".
Your help is greatly appreciated.
Not if the corporation is the owner and the beneficiary of the policy.
On the plus side, there is no income tax to the corporation (assuming it's the owner and beneficiary of the policy) on the death benefit. However if the money is distributed to the employee's family, it is taxed. (There used to be a $5,000 exemption for this - is it still there?)
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