Business owners often come to us for ideas on how to cut their taxes and at some point in the conversation, it almost always is asked, “Hey can’t I deduct my life insurance premium?” Over the years, the IRS has had several rulings that make the deduction of premiums less transparent, more difficult. They might even say not able to be done, but the life insurance industry knows two things. There is a huge need for business owners to own enough life insurance to not just protect their families, but also fund buy/sell arrangements with partners, so that if there’s a death of a partner in their business, they can buy that business owner share from their spouse for each other. So with the permanent need of a large amount of coverage, often the business owner will try to find a way to make that premium deductible. That’s a very long and roundabout way of answering the question, isn’t it. Well, like many things that people ask their CPAs, the answer is, it depends. There are several arrangements where the paying of premium can be pre-tax or at least done in such a way that there is a benefit to the business owner from a tax perspective. Deduction is too strong a word, but many arrangements exist. The problem is business owners aren’t dealing with people that understand all of those strategies. They’re just going to your “average life insurance salesman” who doesn’t know what can be done in the advanced arenas to foster benefits to business owners. Our tax firm has numerous experts around the country that it works with that fully understand all of the strategies that are in place, when they’re appropriate, and if there is any IRS risk associated to the benefit being taken. If you’re a business owner, chances are you need more life insurance than you own. Call us today. We’ll determine whether or not an advanced life case design is possible for your company to in some way benefit from a tax perspective to having those additional coverages in place. We’ll work with your CPA and your current advisors, not try to replace them. Call us today at 954-655-7111 or e-mail us at and let us explain to you and evaluate for you what can be done.