Health insurance covering S corp shareholders.

• Position: News&Trends

In many solely owned businesses, business owners will purchase health insurance in their own name versus the business' name. The type of entity may greatly affect where this insurance premium expense may be deducted on the individual's personal income tax return.

Chief Counsel Advice 200524001 held that self-employed individuals who are sole proprietors and purchase health insurance in their own name can treat that as health insurance purchased in the name of the sole proprietor business. As such, the insurance would qualify under the provisions of IRC Sec....