Which of the Following Is an Explanation for Why Insurance

question 60

Multiple Choice

Which of the following is an explanation for why insurance premiums on a key employee are not deductible?

• A)A deduction for the insurance premium would offset taxable income without the potential for the proceeds generating taxable income.
• B)The federal government does not want to subsidize insurance companies.
• C)It is impractical to trace insurance premiums to the receipt of proceeds.
• D)Congress presumes that all expenses are not deductible unless specifically allowed in the Internal Revenue Code.
• E)This rule was grandfathered from a time when the Internal Revenue Code disallowed all insurance premiums deductions.

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Definitions:

Bipolar Disorder

A mental disorder marked by significant shifts in mood, energy, and activity levels, ranging from depressive lows to manic highs.

Manic Episodes

Periods of abnormally elevated mood, energy, and activity levels, often seen in bipolar disorder.

Automatic Thoughts

Immediate, involuntary thoughts and beliefs that occur spontaneously in response to a stimulus and can influence emotions and behaviors.

Beck's Approach

A cognitive therapy method developed by Aaron Beck, focusing on identifying and changing negative thought patterns to improve emotional states and behaviors.