Question

Premiums paid by sole proprietors for Individual Health Insurance coverage are---------------

A. Always tax-deductible as a business expense.
B. Partially tax-deductible based on the business's profitability.
C. Not tax-deductible as a business expense.
D. Only tax-deductible if the business has more than 50 employees.

Answer 1

Premiums paid by sole proprietors for Individual Health Insurance coverage are not tax-deductible as a business expense.

Step-by-step explanation:

Premiums paid by sole proprietors for Individual Health Insurance coverage are not tax-deductible as a business expense. As a sole proprietorship, the business and the owner are considered the same entity, so the premiums are considered personal expenses rather than business expenses. Therefore, they cannot be deducted as a business expense.