Corporate-Owned Life Insurance (COLI)
$271-$1084
Can You Write Off Corporate-Owned Life Insurance?
Short answer: Corporate-Owned Life Insurance (COLI) — Business Insurance & Risk for established Gen X businesses
Business insurance premiums are fully deductible as ordinary business expenses under IRC §162. This includes general liability, professional liability, property insurance, and commercial auto. Key person life insurance premiums are generally not deductible, but death benefits are tax-free. Self-insurance reserves are not deductible. Proper documentation is required.
Records to keep: Keep receipts and document business use. Deductible if ordinary and necessary for your trade or business.
Corporate-Owned Life Insurance (COLI)
Typical range: $271-$1084
Insurance
Corporate-Owned Life Insurance (COLI) — Business Insurance & Risk for established Gen X businesses
Business justification
Business insurance premiums are fully deductible as ordinary business expenses under IRC §162. This includes general liability, professional liability, property insurance, and commercial auto. Key person life insurance premiums are generally not deductible, but death benefits are tax-free. Self-insurance reserves are not deductible. Proper documentation is required.
Category
- Business Insurance & Risk