corporate owned life insurance

[LarrySeal]

I have a sub chapter s corporation which pays premiums on a corporate owned universal life insurance policy which accumulates cash value the corporation owns.  The beneficiary on the policy is my wife and upon my death, the ownership changes over to her.  Where do I enter the premiums as an expense in the 1120S ?  Line 14 appears to only be for property and casualty.

[JosephS1 · Accepted solution]

Life insurance premiums are not deductible.  Many companies have life insurance on key employees and officers.  Kind of grim subject, but obviously if the key officers or shareholders get hit by a bus and dies, the company is going to have some rough times.  The life insurance proceeds can certainly help.  When the life insurance is owned by individuals, the premiums are not deductible on your tax return anywhere, and then accordingly the proceeds are not reportable on your tax return.  The same theory applies to businesses.  The officer life insurance premiums are not deductible so they are backed out as a “book expense not deductible”.  Then the proceeds would be recorded as “book income not taxed”.

@LarrySeal