Guest
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 Posted:
Mon Nov 14, 2005 9:00 am Post subject:
LLC member health insurance deduction question. |
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I stuck in this problem when I try to figure out the LLC
member (Self-employed person) health insurance deduction.
If the LLC pays the insurance premium on behalf of a member,
it's considered guaranteed payment to the member. e.g. the
member will normally earn 20000 guaranteed payment, and with
5000 insurance paid for him/her, this brings the total
guaranteed payment to 25000.
And then in 1040, self-employed insurance deduction, the
member will deduct 5000 as an adjustment to the income. But
since now the member's earned income is 25000 instead of
20000, after deduction, the adjusted income is: 20000.
I believe the adjusted income should be 15000, instead of
20000.
Am I missing something here?
Thanks in advance
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