Which of the Following Is an Explanation for Why Insurance

question 72

Multiple Choice

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

• A) The insurance deduction 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 IRC disallowed all insurance premiums deductions.

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Definitions:

Erythrocytes

Red blood cells, which are responsible for carrying oxygen from the lungs to the body's tissues and returning carbon dioxide from the tissues back to the lungs.

Hct

Hematocrit; a measure of the proportion of blood volume that is occupied by red blood cells, typically expressed as a percentage.

HCT

Hematocrit, a measure of the proportion of blood volume that is occupied by red blood cells.

Thymus

A lymphoid organ situated in the neck of vertebrates that produces T-cells for the immune system, especially important during early life.