by Barni
(Maple Ridge, BC Canada)
Could you kindly clarify which account(s) should be debited when managing the monthly life insurance premium payments for the owner of a medium-sized company?
I understand that the bank account will be credited in this transaction, but I am uncertain about the corresponding debit side.
In this particular context, where the owner is the only one, would it be necessary to establish an asset account to depict the value of the life insurance policy?
If this is indeed the case, I'd appreciate it if you could provide an example to help me understand it better.
Let's consider a scenario where the monthly premium is $100, and the Death Benefit payout promised under the policy is $1 million.
How would these transactions be represented in our accounting books?
Thank you in advance for your assistance in this matter. Your guidance will aid in ensuring accurate and transparent financial management for our organization.
BB in Maple Ridge, British Columbia, Canada
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by Donna
(NE)
I'm looking to seek some clarification regarding the possibility of writing off my life insurance premiums.
I typically file my taxes using the long form, and I'm curious whether these premiums can be considered as tax-deductible expenses in my particular case.
Are there specific conditions or requirements I need to meet in order to qualify for such deductions, or is this a standard benefit extended to all policyholders?
Any advice or insights you could provide would be greatly appreciated, as I continue to explore potential avenues for tax savings.
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