I am retired and operate a Schedule C business where I earn money for doing small repairs in the community. I do not make a lot of money, usually about 4 to 5 thousand dollars per year. I recently read an article that stated that the IRS now allows you to deduct all premiums paid for Medical Insurance INCLUDING Medicare Insurance against the income you earned as a sole proprietor, a partner in a partnership, or an S corporation shareholder.
That seems like a HUGE benefit. I literally will be able to eliminate all the income I earn on the Schedule C by deducting my Medical Insurance premiums. Does anyone know if this is accurate? This seems like it's too good to be true and an area where it could be abused. I would not otherwise get any benefit from these Medical Insurance Premiums since I do not itemize my deductions. If there are any knowledgeable accountants out there, please provide me with your thoughts on this subject. Thanks in advance for responding.
Also, I am a partner in a Partnership that owns a couple rental properties. How would I deduct the Medical Insurance Premiums against my portion of the Partnership Income?
