Which of the Following Is an Explanation for Why Insurance

question 83

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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