Thread: business checking account

Sole proprietorships are the original "entity" not recognized as separate from the owner.

You are asking a tax question from a general ledger accounting perspective. Non business
expenses are, professionally, expensed from personal accounts of owners. In this
case, the owner of a sole proprietorship. An S.P. is not capable of purchasing anything for
the owner........ S.P. and owner are indivisible.

Technically, the S.P. account and personal account of an S.P. are merged for state law and
tax law purposes. In other words, An S.P. is not a recognized separate person at law like a
corporation or LLC.

Tax accounting proclaims the superiority of specific allocation and distribution
for "neatness". Helse agrees.

The premium can be seen as a business experience. Are you trading in the US, UK?

Chris,

Can you supply additional example or topics relating to Sole Proprietors deductions
for health insurance purchased for nonemployees?


Exerpt:
"If your self-employment income is from a Schedule C business, and you report a net loss on
Form 1040 Line 12, then you are not eligible to deduct your health insurance costs.

"You can deduct the full cost of health insurance you purchase for yourself, your spouse,
and/or your dependents. However, you cannot deduct any insurance costs for any months
you were eligible to participate in a group health insurance plan through your or your
spouse's employer. For example, if you paid for 12 months of health insurance coverage
for yourself and your family, but you became eligible to participate in your spouse's group
health insurance in December, then you can deduct only 11 months worth of insurance
premiums."

http://taxes.about.com/od/deductions...hinsurance.htm

I think this is a Zahid topic.