Life Insurance-CPA REG Exam and EA Part 2 Exam--Corporate Tax-M-1 Reconciliation-By Darius Clark

#cpaexam #enrolledagent
course.i75cpa....
On the CPA REG and TCP Exam, and the EA 2 Exam, the topic of life insurance will be tested.
The rules that surround the possible tax deduction for life insurance premiums is based on the fact that life insurance proceeds are not taxable when received.
When the life insurance policy benefits the employee's family, the premiums paid by the corporation are deductible. The key aspect to distinguish is whether the policy is for the benefit of the company or the employee’s beneficiaries: Premiums paid on life insurance policies where the company is the beneficiary (key person life insurance) are not deductible.
Premiums paid where the employee’s family is the beneficiary are deductible as a form of compensation.

[@guruguruprasath7980]

Thank you Sir

[@JasonJayJJ1]

I'm leaning towards Answer D, but could be A, but I would love to know the answer please Darius. @10:16

[@DariusClarki75]

Answer is $200,600, same as the prior question. The only new fact, the $300,000 received upon death of the officer, is a distractor since life insurance proceeds are not taxable.

[@JasonJayJJ1]

When I had access to the REG individual video course, I could never find the "Chapter 4, Lecture 4" video that is titled "M-1 Reconciliation".....was there supposed to be a video for that specific lecture? All I had was the lecture notes and not the video for Lecture 4.

[@DariusClarki75]

If you were an i75er and were not 100% satisfied with something, why didn't you contact me while you had access? If you are still a CPA REG Candidate please email me and let's address your concern.

[@SujPatra]

D

[@StephK-k3d]

A

[@BrittyGirl95]

D