MMLLC's are treated as partnerships for tax purposes.
This from the IRS: https://www.irs.gov/instructions/i7206# ... 1000134117
I see this excerpt:
For partners, a policy can be either in the name of the partnership or in the name of the partner. You can either pay the premiums yourself or the partnership can pay them and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. However, if the policy is in your name and you pay the premiums yourself, the partnership must reimburse you and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. Otherwise, the insurance plan won’t be considered to be established under your business.
Since the policy is indeed in the name of the MMLLC member and she paid the premiums herself, it appears she cannot take the health insurance premium deduction until the partnership books a reportable guaranteed payment, which did not happen for the tax year.
This from the IRS: https://www.irs.gov/instructions/i7206# ... 1000134117
I see this excerpt:
For partners, a policy can be either in the name of the partnership or in the name of the partner. You can either pay the premiums yourself or the partnership can pay them and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. However, if the policy is in your name and you pay the premiums yourself, the partnership must reimburse you and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. Otherwise, the insurance plan won’t be considered to be established under your business.
Since the policy is indeed in the name of the MMLLC member and she paid the premiums herself, it appears she cannot take the health insurance premium deduction until the partnership books a reportable guaranteed payment, which did not happen for the tax year.
Statistics: Posted by theleeb — Wed Sep 11, 2024 10:47 pm — Replies 6 — Views 804
