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E File Tax Return 2011

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E File Tax Return 2011

E file tax return 2011 Publication 3402 - Introductory Material Table of Contents Reminder IntroductionOrdering forms and publications. E file tax return 2011 Tax questions. E file tax return 2011 Useful Items - You may want to see: Reminder Photographs of missing children. E file tax return 2011  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. E file tax return 2011 Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. E file tax return 2011 You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. E file tax return 2011 Introduction This publication provides federal income, employment, and excise tax information for limited liability companies. E file tax return 2011 This publication does not address state law governing the formation, operation, or termination of limited liability companies. E file tax return 2011 This publication does not address any state taxes. E file tax return 2011 Comments and suggestions. E file tax return 2011   We welcome your comments about this publication and your suggestions for future editions. E file tax return 2011   You can write to us at the following address: Internal Revenue Service Business Forms and Publications Branch SE:W:CAR:MP:T:B 1111 Constitution Ave. E file tax return 2011 NW, IR–6526 Washington, DC 20224   We respond to many letters by telephone. E file tax return 2011 Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. E file tax return 2011   You can email us at *taxforms@irs. E file tax return 2011 gov. E file tax return 2011 (The asterisk must be included in the address. E file tax return 2011 ) Please put “Publications Comment” on the subject line. E file tax return 2011 Although we cannot respond individually to each email, we do appreciate your feedback and will consider your comments as we revise our tax products. E file tax return 2011 Ordering forms and publications. E file tax return 2011   Visit www. E file tax return 2011 irs. E file tax return 2011 gov/formspubs to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response within 10 days after your request is received. E file tax return 2011 Internal Revenue Service1201 N. E file tax return 2011 Mitsubishi MotorwayBloomington, IL 61705-6613 Tax questions. E file tax return 2011   If you have a tax question, check the information available on www. E file tax return 2011 irs. E file tax return 2011 gov or call 1-800-829-1040. E file tax return 2011 We cannot answer tax questions sent to either of the above addresses. E file tax return 2011 Useful Items - You may want to see: Publication 15 (Circular E), Employer's Tax Guide 334 Tax Guide for Small Business 505 Tax Withholding and Estimated Tax 535 Business Expenses 541 Partnerships 542 Corporations 544 Sales and Other Dispositions of Assets 583 Starting a Business and Keeping Records 925 Passive Activity and At-Risk Rules Form (and Instructions) 1065 U. E file tax return 2011 S. E file tax return 2011 Return of Partnership Income 1120 U. E file tax return 2011 S. E file tax return 2011 Corporation Income Tax Return 1120S U. E file tax return 2011 S. E file tax return 2011 Income Tax Return for an S Corporation 2553 Election by a Small Business Corporation 8832 Entity Classification Election See How To Get More Information near the end of this publication for information about getting publications and forms. E file tax return 2011 Prev  Up  Next   Home   More Online Publications
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Your mental and physical health is important in this stage of life. Staying healthy means eating nutritious foods, exercising, and getting regular medical check-ups. Prevention and early detection are the best defense against illness and disease.


The E File Tax Return 2011

E file tax return 2011 6. E file tax return 2011   Insurance Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: Deductible PremiumsSelf-Employed Health Insurance Deduction Nondeductible Premiums Capitalized Premiums When To Deduct Premiums What's New Retiree drug subsidy. E file tax return 2011  Beginning in 2013, sponsors of certain qualified retiree prescription drug plans must account for the subsidy received by reducing the amount of qualified retiree prescription drug plans expense by the subsidy received (taking into account the taxpayer's accounting method). E file tax return 2011 For more information, see the retiree drug subsidy frequently asked questions on IRS. E file tax return 2011 gov. E file tax return 2011 Introduction You generally can deduct the ordinary and necessary cost of insurance as a business expense if it is for your trade, business, or profession. E file tax return 2011 However, you may have to capitalize certain insurance costs under the uniform capitalization rules. E file tax return 2011 For more information, see Capitalized Premiums , later. E file tax return 2011 Topics - This chapter discusses: Deductible premiums Nondeductible premiums Capitalized premiums When to deduct premiums Useful Items - You may want to see: Publication 15-B Employer's Tax Guide to Fringe Benefits 525 Taxable and Nontaxable Income 538 Accounting Periods and Methods 547 Casualties, Disasters, and Thefts Form (and Instructions) 1040 U. E file tax return 2011 S. E file tax return 2011 Individual Income Tax Return See chapter 12 for information about getting publications and forms. E file tax return 2011 Deductible Premiums You generally can deduct premiums you pay for the following kinds of insurance related to your trade or business. E file tax return 2011 Insurance that covers fire, storm, theft, accident, or similar losses. E file tax return 2011 Credit insurance that covers losses from business bad debts. E file tax return 2011 Group hospitalization and medical insurance for employees, including long-term care insurance. E file tax return 2011 If a partnership pays accident and health insurance premiums for its partners, it generally can deduct them as guaranteed payments to partners. E file tax return 2011 If an S corporation pays accident and health insurance premiums for its more-than-2% shareholder-employees, it generally can deduct them, but must also include them in the shareholder's wages subject to federal income tax withholding. E file tax return 2011 See Publication 15-B. E file tax return 2011 Liability insurance. E file tax return 2011 Malpractice insurance that covers your personal liability for professional negligence resulting in injury or damage to patients or clients. E file tax return 2011 Workers' compensation insurance set by state law that covers any claims for bodily injuries or job-related diseases suffered by employees in your business, regardless of fault. E file tax return 2011 If a partnership pays workers' compensation premiums for its partners, it generally can deduct them as guaranteed payments to partners. E file tax return 2011 If an S corporation pays workers' compensation premiums for its more-than-2% shareholder-employees, it generally can deduct them, but must also include them in the shareholder's wages. E file tax return 2011 Contributions to a state unemployment insurance fund are deductible as taxes if they are considered taxes under state law. E file tax return 2011 Overhead insurance that pays for business overhead expenses you have during long periods of disability caused by your injury or sickness. E file tax return 2011 Car and other vehicle insurance that covers vehicles used in your business for liability, damages, and other losses. E file tax return 2011 If you operate a vehicle partly for personal use, deduct only the part of the insurance premium that applies to the business use of the vehicle. E file tax return 2011 If you use the standard mileage rate to figure your car expenses, you cannot deduct any car insurance premiums. E file tax return 2011 Life insurance covering your officers and employees if you are not directly or indirectly a beneficiary under the contract. E file tax return 2011 Business interruption insurance that pays for lost profits if your business is shut down due to a fire or other cause. E file tax return 2011 Self-Employed Health Insurance Deduction You may be able to deduct premiums paid for medical and dental insurance and qualified long-term care insurance for yourself, your spouse, and your dependents. E file tax return 2011 The insurance can also cover your child who was under age 27 at the end of 2013, even if the child was not your dependent. E file tax return 2011 A child includes your son, daughter, stepchild, adopted child, or foster child. E file tax return 2011 A foster child is any child placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. E file tax return 2011 One of the following statements must be true. E file tax return 2011 You were self-employed and had a net profit for the year reported on Schedule C (Form 1040), Profit or Loss From Business; Schedule C-EZ (Form 1040), Net Profit From Business; or Schedule F (Form 1040), Profit or Loss From Farming. E file tax return 2011 You were a partner with net earnings from self-employment for the year reported on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. E file tax return 2011 , box 14, code A. E file tax return 2011 You used one of the optional methods to figure your net earnings from self-employment on Schedule SE. E file tax return 2011 You received wages in 2013 from an S corporation in which you were a more-than-2% shareholder. E file tax return 2011 Health insurance premiums paid or reimbursed by the S corporation are shown as wages on Form W-2, Wage and Tax Statement. E file tax return 2011 The insurance plan must be established, or considered to be established as discussed in the following bullets, under your business. E file tax return 2011 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. E file tax return 2011 For partners, a policy can be either in the name of the partnership or in the name of the partner. E file tax return 2011 You can either pay the premiums yourself or your partnership can pay them and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. E file tax return 2011 However, if the policy is in your name and you pay the premiums yourself, the partnership must reimburse you and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. E file tax return 2011 Otherwise, the insurance plan will not be considered to be established under your business. E file tax return 2011 For more-than-2% shareholders, a policy can be either in the name of the S corporation or in the name of the shareholder. E file tax return 2011 You can either pay the premiums yourself or your S corporation can pay them and report the premium amounts on Form W-2 as wages to be included in your gross income. E file tax return 2011 However, if the policy is in your name and you pay the premiums yourself, the S corporation must reimburse you and report the premium amounts on Form W-2 as wages to be included in your gross income. E file tax return 2011 Otherwise, the insurance plan will not be considered to be established under your business. E file tax return 2011 Medicare premiums you voluntarily pay to obtain insurance in your name that is similar to qualifying private health insurance can be used to figure the deduction. E file tax return 2011 If you previously filed returns without using Medicare premiums to figure the deduction, you can file timely amended returns to refigure the deduction. E file tax return 2011 For more information, see Form 1040X, Amended U. E file tax return 2011 S. E file tax return 2011 Individual Income Tax Return. E file tax return 2011 Amounts paid for health insurance coverage from retirement plan distributions that were nontaxable because you are a retired public safety officer cannot be used to figure the deduction. E file tax return 2011 Take the deduction on Form 1040, line 29. E file tax return 2011 Qualified long-term care insurance. E file tax return 2011   You can include premiums paid on a qualified long-term care insurance contract when figuring your deduction. E file tax return 2011 But, for each person covered, you can include only the smaller of the following amounts. E file tax return 2011 The amount paid for that person. E file tax return 2011 The amount shown below. E file tax return 2011 Use the person's age at the end of the tax year. E file tax return 2011 Age 40 or younger–$360 Age 41 to 50–$680 Age 51 to 60–$1,360 Age 61 to 70–$3,640 Age 71 or older–$4,550 Qualified long-term care insurance contract. E file tax return 2011   A qualified long-term care insurance contract is an insurance contract that only provides coverage of qualified long-term care services. E file tax return 2011 The contract must meet all the following requirements. E file tax return 2011 It must be guaranteed renewable. E file tax return 2011 It must provide that refunds, other than refunds on the death of the insured or complete surrender or cancellation of the contract, and dividends under the contract may be used only to reduce future premiums or increase future benefits. E file tax return 2011 It must not provide for a cash surrender value or other money that can be paid, assigned, pledged, or borrowed. E file tax return 2011 It generally must not pay or reimburse expenses incurred for services or items that would be reimbursed under Medicare, except where Medicare is a secondary payer or the contract makes per diem or other periodic payments without regard to expenses. E file tax return 2011 Qualified long-term care services. E file tax return 2011   Qualified long-term care services are: Necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, and rehabilitative services, and Maintenance or personal care services. E file tax return 2011 The services must be required by a chronically ill individual and prescribed by a licensed health care practitioner. E file tax return 2011 Worksheet 6-A. E file tax return 2011 Self-Employed Health Insurance Deduction Worksheet Note. E file tax return 2011 Use a separate worksheet for each trade or business under which an insurance plan is established. E file tax return 2011 1. E file tax return 2011 Enter the total amount paid in 2013 for health insurance coverage established under your business for 2013 for you, your spouse, and your dependents. E file tax return 2011 Your insurance can also cover your child who was under age 27 at the end of 2013, even if the child was not your dependent. E file tax return 2011 But do not include the following. E file tax return 2011   Amounts for any month you were eligible to participate in a health plan subsidized by your or your spouse's employer or the employer of either your dependent or your child who was under the age of 27 at the end of 2013. E file tax return 2011 Any amounts paid from retirement plan distributions that were nontaxable because you are a retired public safety officer. E file tax return 2011 Any amounts you included on Form 8885, line 4. E file tax return 2011 Any qualified health insurance premiums you paid to “U. E file tax return 2011 S. E file tax return 2011 Treasury-HCTC. E file tax return 2011 ” Any health coverage tax credit advance payments shown in box 1 of Form 1099-H. E file tax return 2011 Any payments for qualified long-term care insurance (see line 2) 1. E file tax return 2011   2. E file tax return 2011 For coverage under a qualified long-term care insurance contract, enter for each person covered the smaller of the following amounts. E file tax return 2011       a) Total payments made for that person during the year. E file tax return 2011       b) The amount shown below. E file tax return 2011 Use the person's age at the end of the tax year. E file tax return 2011         $360— if that person is age 40 or younger          $680— if age 41 to 50         $1,360— if age 51 to 60         $3,640— if age 61 to 70         $4,550— if age 71 or older         Do not include payments for any month you were eligible to participate in a long-term care insurance plan subsidized by your or your spouse’s employer or the employer of either your dependent or your child who was under the age of 27 at the end of 2013. E file tax return 2011 If more than one person is covered, figure separately the amount to enter for each person. E file tax return 2011 Then enter the total of those amounts 2. E file tax return 2011   3. E file tax return 2011 Add lines 1 and 2 3. E file tax return 2011   4. E file tax return 2011 Enter your net profit* and any other earned income** from the trade or business under which the insurance plan is established. E file tax return 2011 Do not include Conservation Reserve Program payments exempt from self-employment tax. E file tax return 2011 If the business is an S corporation, skip to line 11 4. E file tax return 2011   5. E file tax return 2011 Enter the total of all net profits* from: Schedule C (Form 1040), line 31; Schedule C-EZ (Form 1040), line 3; Schedule F (Form 1040), line 34; or Schedule K-1 (Form 1065), box 14, code A; plus any other income allocable to the profitable businesses. E file tax return 2011 Do not include Conservation Reserve Program payments exempt from self-employment tax. E file tax return 2011 See the Instructions for Schedule SE (Form 1040). E file tax return 2011 Do not include any net losses shown on these schedules. E file tax return 2011 5. E file tax return 2011   6. E file tax return 2011 Divide line 4 by line 5 6. E file tax return 2011   7. E file tax return 2011 Multiply Form 1040, line 27, by the percentage on line 6 7. E file tax return 2011   8. E file tax return 2011 Subtract line 7 from line 4 8. E file tax return 2011   9. E file tax return 2011 Enter the amount, if any, from Form 1040, line 28, attributable to the same trade or business in which the insurance plan is established 9. E file tax return 2011   10. E file tax return 2011 Subtract line 9 from line 8 10. E file tax return 2011   11. E file tax return 2011 Enter your Medicare wages (Form W-2, box 5) from an S corporation in which you are a more-than-2% shareholder and in which the insurance plan is established 11. E file tax return 2011   12. E file tax return 2011 Enter any amount from Form 2555, line 45, attributable to the amount entered on line 4 or 11 above, or any amount from Form 2555-EZ, line 18, attributable to the amount entered on line 11 above 12. E file tax return 2011   13. E file tax return 2011 Subtract line 12 from line 10 or 11, whichever applies 13. E file tax return 2011   14. E file tax return 2011 Enter the smaller of line 3 or line 13 here and on Form 1040, line 29. E file tax return 2011 Do not include this amount when figuring any medical expense deduction on Schedule A (Form 1040). E file tax return 2011 14. E file tax return 2011   * If you used either optional method to figure your net earnings from self-employment from any business, do not enter your net profit from the business. E file tax return 2011 Instead, enter the amount attributable to that business from Schedule SE (Form 1040), Section B, line 4b. E file tax return 2011 * *Earned income includes net earnings and gains from the sale, transfer, or licensing of property you created. E file tax return 2011 However, it does not include capital gain income. E file tax return 2011 Chronically ill individual. E file tax return 2011   A chronically ill individual is a person who has been certified as one of the following. E file tax return 2011 An individual who has been unable, due to loss of functional capacity for at least 90 days, to perform at least two activities of daily living without substantial assistance from another individual. E file tax return 2011 Activities of daily living are eating, toileting, transferring (general mobility), bathing, dressing, and continence. E file tax return 2011 An individual who requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment. E file tax return 2011 The certification must have been made by a licensed health care practitioner within the previous 12 months. E file tax return 2011 Benefits received. E file tax return 2011   For information on excluding benefits you receive from a long-term care contract from gross income, see Publication 525. E file tax return 2011 Other coverage. E file tax return 2011   You cannot take the deduction for any month you were eligible to participate in any employer (including your spouse's) subsidized health plan at any time during that month, even if you did not actually participate. E file tax return 2011 In addition, if you were eligible for any month or part of a month to participate in any subsidized health plan maintained by the employer of either your dependent or your child who was under age 27 at the end of 2013, do not use amounts paid for coverage for that month to figure the deduction. E file tax return 2011   These rules are applied separately to plans that provide long-term care insurance and plans that do not provide long-term care insurance. E file tax return 2011 However, any medical insurance payments not deductible on Form 1040, line 29, can be included as medical expenses on Schedule A (Form 1040), Itemized Deductions, if you itemize deductions. E file tax return 2011 Effect on itemized deductions. E file tax return 2011   Subtract the health insurance deduction from your medical insurance when figuring medical expenses on Schedule A (Form 1040) if you itemize deductions. E file tax return 2011 Effect on self-employment tax. E file tax return 2011   For tax years beginning before or after 2010, you cannot subtract the self-employed health insurance deduction when figuring net earnings for your self-employment tax from the business under which the insurance plan is established, or considered to be established as discussed earlier. E file tax return 2011 For more information, see Schedule SE (Form 1040). E file tax return 2011 How to figure the deduction. E file tax return 2011   Generally, you can use the worksheet in the Form 1040 instructions to figure your deduction. E file tax return 2011 However, if any of the following apply, you must use Worksheet 6-A in this chapter. E file tax return 2011 You had more than one source of income subject to self-employment tax. E file tax return 2011 You file Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion. E file tax return 2011 You are using amounts paid for qualified long-term care insurance to figure the deduction. E file tax return 2011 If you are claiming the health coverage tax credit, complete Form 8885, Health Coverage Tax Credit, before you figure this deduction. E file tax return 2011 Health coverage tax credit. E file tax return 2011   You may be able to take this credit only if you were an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment trade adjustment assistance (RTAA) recipient, or Pension Benefit Guaranty Corporation (PBGC) pension recipient. E file tax return 2011 Use Form 8885 to figure the amount, if any, of this credit. E file tax return 2011   When figuring the amount to enter on line 1 of Worksheet 6-A, do not include the following. E file tax return 2011 Any amounts you included on Form 8885, line 4. E file tax return 2011 Any qualified health insurance premiums you paid to “U. E file tax return 2011 S. E file tax return 2011 Treasury-HCTC. E file tax return 2011 ” Any health coverage tax credit advance payments shown in box 1 of Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments. E file tax return 2011 More than one health plan and business. E file tax return 2011   If you have more than one health plan during the year and each plan is established under a different business, you must use separate worksheets (Worksheet 6-A) to figure each plan's net earnings limit. E file tax return 2011 Include the premium you paid under each plan on line 1 or line 2 of that separate worksheet and your net profit (or wages) from that business on line 4 (or line 11). E file tax return 2011 For a plan that provides long-term care insurance, the total of the amounts entered for each person on line 2 of all worksheets cannot be more than the appropriate limit shown on line 2 for that person. E file tax return 2011 Nondeductible Premiums You cannot deduct premiums on the following kinds of insurance. E file tax return 2011 Self-insurance reserve funds. E file tax return 2011 You cannot deduct amounts credited to a reserve set up for self-insurance. E file tax return 2011 This applies even if you cannot get business insurance coverage for certain business risks. E file tax return 2011 However, your actual losses may be deductible. E file tax return 2011 See Publication 547. E file tax return 2011 Loss of earnings. E file tax return 2011 You cannot deduct premiums for a policy that pays for lost earnings due to sickness or disability. E file tax return 2011 However, see the discussion on overhead insurance, item (8), under Deductible Premiums , earlier. E file tax return 2011 Certain life insurance and annuities. E file tax return 2011 For contracts issued before June 9, 1997, you cannot deduct the premiums on a life insurance policy covering you, an employee, or any person with a financial interest in your business if you are directly or indirectly a beneficiary of the policy. E file tax return 2011 You are included among possible beneficiaries of the policy if the policy owner is obligated to repay a loan from you using the proceeds of the policy. E file tax return 2011 A person has a financial interest in your business if the person is an owner or part owner of the business or has lent money to the business. E file tax return 2011 For contracts issued after June 8, 1997, you generally cannot deduct the premiums on any life insurance policy, endowment contract, or annuity contract if you are directly or indirectly a beneficiary. E file tax return 2011 The disallowance applies without regard to whom the policy covers. E file tax return 2011 Partners. E file tax return 2011 If, as a partner in a partnership, you take out an insurance policy on your own life and name your partners as beneficiaries to induce them to retain their investments in the partnership, you are considered a beneficiary. E file tax return 2011 You cannot deduct the insurance premiums. E file tax return 2011 Insurance to secure a loan. E file tax return 2011 If you take out a policy on your life or on the life of another person with a financial interest in your business to get or protect a business loan, you cannot deduct the premiums as a business expense. E file tax return 2011 Nor can you deduct the premiums as interest on business loans or as an expense of financing loans. E file tax return 2011 In the event of death, the proceeds of the policy are generally not taxed as income even if they are used to liquidate the debt. E file tax return 2011 Capitalized Premiums Under the uniform capitalization rules, you must capitalize the direct costs and part of the indirect costs for certain production or resale activities. E file tax return 2011 Include these costs in the basis of property you produce or acquire for resale, rather than claiming them as a current deduction. E file tax return 2011 You recover the costs through depreciation, amortization, or cost of goods sold when you use, sell, or otherwise dispose of the property. E file tax return 2011 Indirect costs include premiums for insurance on your plant or facility, machinery, equipment, materials, property produced, or property acquired for resale. E file tax return 2011 Uniform capitalization rules. E file tax return 2011   You may be subject to the uniform capitalization rules if you do any of the following, unless the property is produced for your use other than in a business or an activity carried on for profit. E file tax return 2011 Produce real property or tangible personal property. E file tax return 2011 For this purpose, tangible personal property includes a film, sound recording, video tape, book, or similar property. E file tax return 2011 Acquire property for resale. E file tax return 2011 However, these rules do not apply to the following property. E file tax return 2011 Personal property you acquire for resale if your average annual gross receipts are $10 million or less for the 3 prior tax years. E file tax return 2011 Property you produce if you meet either of the following conditions. E file tax return 2011 Your indirect costs of producing the property are $200,000 or less. E file tax return 2011 You use the cash method of accounting and do not account for inventories. E file tax return 2011 More information. E file tax return 2011   For more information on these rules, see Uniform Capitalization Rules in Publication 538 and the regulations under Internal Revenue Code section 263A. E file tax return 2011 When To Deduct Premiums You can usually deduct insurance premiums in the tax year to which they apply. E file tax return 2011 Cash method. E file tax return 2011   If you use the cash method of accounting, you generally deduct insurance premiums in the tax year you actually paid them, even if you incurred them in an earlier year. E file tax return 2011 However, see Prepayment , later. E file tax return 2011 Accrual method. E file tax return 2011   If you use an accrual method of accounting, you cannot deduct insurance premiums before the tax year in which you incur a liability for them. E file tax return 2011 In addition, you cannot deduct insurance premiums before the tax year in which you actually pay them (unless the exception for recurring items applies). E file tax return 2011 For more information about the accrual method of accounting, see chapter 1. E file tax return 2011 For information about the exception for recurring items, see Publication 538. E file tax return 2011 Prepayment. E file tax return 2011   You cannot deduct expenses in advance, even if you pay them in advance. E file tax return 2011 This rule applies to any expense paid far enough in advance to, in effect, create an asset with a useful life extending substantially beyond the end of the current tax year. E file tax return 2011   Expenses such as insurance are generally allocable to a period of time. E file tax return 2011 You can deduct insurance expenses for the year to which they are allocable. E file tax return 2011 Example. E file tax return 2011 In 2013, you signed a 3-year insurance contract. E file tax return 2011 Even though you paid the premiums for 2013, 2014, and 2015 when you signed the contract, you can only deduct the premium for 2013 on your 2013 tax return. E file tax return 2011 You can deduct in 2014 and 2015 the premium allocable to those years. E file tax return 2011 Dividends received. E file tax return 2011   If you receive dividends from business insurance and you deducted the premiums in prior years, at least part of the dividends generally are income. E file tax return 2011 For more information, see Recovery of amount deducted (tax benefit rule) in chapter 1 under How Much Can I Deduct. E file tax return 2011 Prev  Up  Next   Home   More Online Publications