Tax treatment for Partner of a partnership who buys his/her own condition insurance?
Does anyone know of any information and advise in handling this situation?
Through Section 162 (l) and Rev Ruling 91-26. we know the IRS have shown that a Partner in a partnership will not be taxed on strength insuance premiums paid for by the partnership. RR 91-26 also included S-corp treatment.
However, the IRS released Notice 2008-1, which specifially addressed S-Corps (only). This guidance allowed a s-corp (2% shareholder/employee) to buy their own insurnace & hold it reimbursed or the premium paid by the company. This allows them more freedom in choosing plans / coverage if the S-corp itself does not enjoy such a plan.
How would this be treated for a partner in a partnership? If the parter went out and get his own health insuance elsewhere? How could it be taken as a deduction (but not on Schedule A)?
ANy guidance or tips out here?
"> I have met this kind of problem previously,here http://www.HealthInsuranceFreeTips.info/free-health-insurance.htm is the resource I found useful.
IRS pub 535, page 18.
Related Questions:
Through Section 162 (l) and Rev Ruling 91-26. we know the IRS have shown that a Partner in a partnership will not be taxed on strength insuance premiums paid for by the partnership. RR 91-26 also included S-corp treatment.
However, the IRS released Notice 2008-1, which specifially addressed S-Corps (only). This guidance allowed a s-corp (2% shareholder/employee) to buy their own insurnace & hold it reimbursed or the premium paid by the company. This allows them more freedom in choosing plans / coverage if the S-corp itself does not enjoy such a plan.
How would this be treated for a partner in a partnership? If the parter went out and get his own health insuance elsewhere? How could it be taken as a deduction (but not on Schedule A)?
ANy guidance or tips out here?
"> I have met this kind of problem previously,here http://www.HealthInsuranceFreeTips.info/free-health-insurance.htm is the resource I found useful.
IRS pub 535, page 18.
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