Match the proper deduction method with the correct expenditures.
-Premiums the insured taxpayer pays for life insurance
A)Capitalized and amortized over a number of accounting periods
B)Expensed in the period incurred
C)Not deductible
D)Can be capitalized and amortized or deductible depending on the amount of the expenditure

Question

Quizplus · Accepted Answer

Premiums for life insurance are not deductible for tax purposes, except in special circumstances such as when paid by an employer as part of a group plan or as a self-employed individual. They cannot be capitalized and amortized over time or expensed in the period incurred.

Match the Proper Deduction Method with the Correct Expenditures