self employed health insurance

[ljwalters]

Can client take the medicare supliment insurance paid for a dependent on the self employed insurance line. In addithion to the rest of the family of course.

This is a strange one.

Linda and buddy

[lbbwest]

Can client take the medicare supliment insurance paid for a dependent on the self employed insurance line. In addithion to the rest of the family of course.

This is a strange one.

Linda and buddy

Hi Linda & Buddy, long tax season, no time to post....lbb here, NO, this issue was debated ad nauseaum for several tax seasons, IRS said (don't remember, but I think Rev. Ruling) MUST be in the name of the business which precluded self-employed from taking spouses employed insurance co-pay or premium. That was the last I read on it, haven't reasearched it this year, sorry, no more specific, but you get what you pay for. Stay sane. lbb

[ljwalters]

<<from taking spouses employed insurance co-pay or premium>>

This is not a spouse it is an "other" dependent on social Security not able to pay is own medicare supliment insurance.

Client does qualify to take as dependent and is self employed. I didn't think he could take the expense ecept on the sch. A but client doesn't have a sch A. He insisted he took it last year.

Thanks Linda and buddy

[jainen]

>>he took it last year<<

It was not a Revenue Ruling, but a Chief Counsel's Advice. That's not very high authority, but it has stood the test of many years. In my opinion, it is obvious that Medicare is not "established under" your client's Schedule C business.

Has anybody figured out a tactful way to tell clients that if they want shoddy tax work they should take their business back to the idiot who did it before?

[RitaB]

Has anybody figured out a tactful way to tell clients that if they want shoddy tax work they should take their business back to the idiot who did it before?

Just go with that. Tact is over-rated.

[Margaret CPA in OH]

Hear, hear! Sometimes tact simply goes directly over (or through) the heads of some clients. Sublety is incomprehensible. And sometimes clients and others just need to hear specific words such as, "That treatment isn't according to tax law and I won't do that." I had to do that last March and dang if the client didn't immediately call my employee to ask if she would continue doing the bookkeeping.

[TAXBILLY]

http://www.irs.gov/publications/p535/ch06.html#en_US_publink1000208843

taxbilly

[RitaB]

http://www.irs.gov/publications/p535/ch06.html#en_US_publink1000208843

taxbilly

"For self-employed individuals filing a Schedule C, C-EZ, or F, a policy can be either in the name of the business or in the name of the individual."

I love you, TAXBILLY. You ARE the man. (I'm pretty sure. I mean, some ladies go by "Billy", too. You can never be too sure.)

[TAXBILLY]

I love you too, RitaB.

Yes I am de man!

taxbilly

[OldJack]

I deducted my dog as an "other" dependent last year, but someone told me I couldn't deduct "Old Blue" this year. Is that correct? He lived in my house all year and ate me out of house and home so he is an expensive dependent.

[Gail in Virginia]

I deducted my dog as an "other" dependent last year, but someone told me I couldn't deduct "Old Blue" this year. Is that correct? He lived in my house all year and ate me out of house and home so he is an expensive dependent.

Just be sure that you get his social security number correct and you should be fine, Old Jack. :spaz:

[GeneInAlabama]

I told my cousin that he could deduct his parrot if he could get a social security number for him, so I don't see why you can't deduct "Old Blue". Go for it!

[jainen]

>>ate me out of house and home<<

Since you left, he apparently was not a member of your household for the entire year. In my opinion you cannot claim him as a dependent (unless of course you are related).

[JohnH]

Speaking of parrots:

A young man's mother was now living in Miami Beach and he didn't get to see her as often as he would like. His father was no longer around and he felt saddened for his mother being lonely. So for his mother’s birthday, he purchased a very rare parrot, trained to speak seven languages. He made arrangements for a courier service to deliver the bird to his dear mother. After a few days he called.

"Hey Mom, what do you think of the bird?"

"The bird was delicious, I even saved the leftovers to make some stew."

"You ATE the parrot? That bird cost me $1,000. It was a rare breed and could even speak seven languages!"

"Oh, excuse me. If the bird was so danged smart, why didn't it say something when I put it in the oven?"