Basically, because it is a benefit for the lender, not the business while you usually have to pay tax on Business Loan Protection premiums, the payout is typically received free from any tax

Basically, because it is a benefit for the lender, not the business while you usually have to pay tax on Business Loan Protection premiums, the payout is typically received free from any tax

Considering that the insurance coverage just isn’t theoretically for the benefit of the continuing business(rather this is the loan provider who’ll receive the funds and whoever money are at danger), company Loan insurance fees are not typically tax-deductible as a company cost. Instead, premiums are addressed included in the price of raising money.

But, should a claim be produced the advantage from company Loan Insurance just isn’t taxable for the continuing company in most instances, since it is destined for the lending company and won’t be retained within the business account. (more…)

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