Tax Deductions on LTCi Premium for Business Owners

There may be significant tax savings to business owners that purchase long-term care insurance for themselves and/or their employees. There is still time to qualify for deductions for this year – even if their policy isn’t issued until 2022.

Here are the tax advantages to businesses:

For Self Employed Business Owners

• Sole Proprietor

• Partnership

• LLC

• S Corporation

Eligible premium may be tax deductible when the business purchases long-term care insurance for (see 2021 Eligible Premium Chart by age):

• Owner

• Spouse

• Dependents

Actual premium may be tax deductible when the business purchases long-term care insurance policies for:

• Employees

For Owners of C Corporations

Actual premium may be tax deductible when the business purchases long-term care insurance policies for:

• Owner/Employee

• Spouse

• Dependents

• Employees

Source: Mutual of Omaha Tax Advantages for Business Owners

This is not intended to be tax advice. We always recommend that you consult your CPA or tax advisor to determine specific benefits for your business.

Business owners are often looking for avenues for tax advantages at this time of year. This would be an ideal time to reach out to show them how they can protect their family with LTCi.

If you are one of our LTCi producers that hasn’t purchased a plan yet – you may want to consider the tax advantages as well. This is a great way to learn the process of an application from submission to issue.

For more information on the plans available in your state, please contact one of our marketing specialists at 1-800-945-1953.