I have a client that is a 100% owner of a S Corporation.
She pays for health insurance for herself and her daughter through her late husband's union as a "COBRA" payment.
My CCH "Master Tax Guide" says that "you can deduct from gross income 100% of amounts paid ..." The TaxBook says that "For more than 2% shareholders, a policy can be either in the name of the S corporation or the shareholder."
Do COBRA payments count as an adjustment to gross income (line 29 of form 1040)?
Thank you for your feed back.
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David Rothfeld
DAVID J. ROTHFELD, CPA
Hicksville NY
516-433-2129
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