Is Tail Insurance a write off?

[foxtrot]

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Has anyone written their malpractice tail insurance off on their tax returns? It is just ridiculous how much this stuff costs. When CEO's leave companies, they don't have to pay thousands of dollars in fees. Instead, they get huge severance packages.

 

[deleted126335]

Has anyone written their malpractice tail insurance off on their tax returns? It is just ridiculous how much this stuff costs. When CEO's leave companies, they don't have to pay thousands of dollars in fees. Instead, they get huge severance packages.

Short answer yes. Long answer how valuable the deduction is depends on how you are paid, tax deductible business expense (W2) or payable with pretax dollars (independent contractor, Partner in S-corp, etc.) This is undoubtedly an oversimplification. Not an accountant.

 

[pgg]

Has anyone written their malpractice tail insurance off on their tax returns?

Why wouldn't it be deductable? It's just a different flavor of malpractice insurance.

 

[Arch Guillotti]

Has anyone written their malpractice tail insurance off on their tax returns? It is just ridiculous how much this stuff costs. When CEO's leave companies, they don't have to pay thousands of dollars in fees. Instead, they get huge severance packages.

dude get an accountant, and yes the stuff is ridiculous.

 

[BCM]

If you are an independent contractor or self employed, then the cost of tail comes off your gross income on your schedule C. Again, get an accountant.

 

[sevoflurane]

dude get an accountant, and yes the stuff is ridiculous.

Sure is... OB colleague is retiring... Tail = 170k