Question for the Money Doctors
Question submitted on Nov 29, 2012.
QuestionI have a small business an I know you can deduct the health insurance premiums. But I would like to know if you can deduct the co-payments, deductables, prescriptions i.e. money out of pocket?
Also, do you have to pay inheritance tax for an amount under $100K?
Most small businesses are operated as sole proprietorships, partnerships or S Corporations which are not allowed to deduct out-of-pocket medical expenses from their business income. Rather, those expenses are deductible by you individually as an itemized medical expense deduction on Schedule A of your Form 1040.
Federal estate tax is not due on a taxable estate under $100,000. You should check with a CPA/PFS (www.findacpapfs.com) in your vicinity to confirm that there is no State inheritance tax due as well.
I hope that this helps.
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