All of the following are true EXCEPT: Select one: a. Premiums paid on a business

Question

All of the following are true EXCEPT:

Select one:

a. Premiums paid on a business overhead expense policy are deductible as a business expense.

b. Proceeds received from a business overhead expense policy are taxable income to the business.

c. Premiums paid on a standard personal disability policy for a sole proprietor are deductible as a business expense.

d. Proceeds received from a standard personal disability policy for a sole proprietor are tax-exempt as compensation for personal injuries or sickness.

Explanation / Answer

The option "C " is not true .

Premiums paid on a standard personal disability policy for a sole proprietor are NOT deductible as a business expense as same are personal expense and won't be admittable as a business expense.

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