I am retired with an LLC (consulting business) that was not profitable in 2017 and 2018. Can I take Medicare B +Supplement as a legitimate business expense for the LLC?

[IreneS · Accepted solution]

Yes - You can enter the premiums paid Medicare B and the supplement as self-employed health insurance premiums.  [It will show as a deduction on Schedule 1 of Form 1040, line 16.]

If you want these premiums to be part of the self-employed health insurance deduction, do not enter your Medicare premiums when entering the information from your SSA-1099 (Social Security Benefits). When you go through the questions for your business expenses, enter those premium expenses for self-employed health insurance premiums.

To enter the Medicare premiums, please follow these steps:

1. On the Your 20XX self-employed work summary screen, click on Edit next to your business. 
2. On the Here's your [business] info screen, click on the box Add expenses for this work. 
3. On the Tell us about any expenses screen, scroll down to Less Common Expenses, mark the radio button for Health insurance premiums and click Continue at the bottom of the screen.   
4. Enter the amount and description on the next page.  If you need more than one entry, click on Add another row. 

NOTE:

It's OK that you had a loss for 2018 and 2019.  An activity is presumed to be a for-profit business if gross income exceeds deductions for three or more out of five consecutive years.

[Edited | 4/15/2020 | 8:10am PDT]