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eyedocbob
Returning Member

Can I deduct health insurance business closed?

I closed my business 12/31/2018.  Because of the nature of the business I had some income and a few expenses the first quarter of 2019.  Can I deduct my health insurance premiums for any of 2019 as a business expense?  I changed to a self pay plan 6/1/2019.  I am filing a Sch. C - self employed.

Thank You!

3 Replies
LeonardS
Expert Alumni

Can I deduct health insurance business closed?

Yes, you may deduct your 2019 income and expenses on Schedule C when you file your 2019 tax return.  The fact that you closed your business on 12/31/2018 does not prevent you from claiming the business income/expenses incurred in  2019.

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eyedocbob
Returning Member

Can I deduct health insurance business closed?

Maybe I should provide a few more specifics.  I started work as an employee 1/1/19 - they don't provide health insurance.  I continued the group health plan I had as self-employed for the first five months of 2019 and then changed to a self-pay plan.  I'm not sure those five months qualify as a legitimate business expense even thou I was still tying up loose ends.  Don't want to raise any flags.

MaryK1101
Expert Alumni

Can I deduct health insurance business closed?

You can deduct self-employed health insurance up to your net business income so if you did not have income after expenses you would not be able to deduct regardless.  If you did have net income, as long as you were active in the business activity you can deduct.

@eyedocbob

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