Nobody downloaded yet

Business insurance and how it affact on the taxes - Essay Example

Comments (0) Cite this document
This insurance tax on premium is taxation upon the insurers i.e. both foreign and domestic, for the benefit of their engagement in the insurance providence business. The insurance premium duty can be seen as the insurance cover provider’s…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.9% of users find it useful
Business insurance and how it affact on the taxes
Read TextPreview

Extract of sample "Business insurance and how it affact on the taxes"

Download file to see previous pages The tax on insurance premium does not in reality have an effect on the individual policy holder in drastic ways. The more flourishing an insurance cover provider is, the higher their taxation on the insurance premium.
Both IRS publication 334 (small business tax guide) and IRS publication 535(business expenses) are readily available in the internet and are a perfect resource for many business owners. Certain types of enterprises should be cautious, and make sure they get skilled tax assistance when they are preparing their income and when they are listing their premium deductions. This is as a result of the tax avoidance schemes which have been caught by IRS over the years. These unscrupulous people have made taxation in businesses exceedingly difficult no for everyone i.e. even for the fair tax payers.
There is two common set of laws that are usually applied during the deduction of premiums. One of these laws is that insurance premiums have to be to the advantage of the enterprise and should be intended for a business purpose. The other is that, insurance covers benefitting groups e.g. managers, employees and owners alike and identifying the enterprise, are good. Those premiums that are paid for the advantage of one, normally the owner of the business are bad. There are a number of commonly accepted premium deductions. One of these is credit insurance.
Credit insurance is used to cover losses from bad debts for business in order for it to continue running its activities. Another one is group hospitalization and employees’ medical insurance. This one also includes the long term care insurance. Liability insurance is also another one. It helps to protect the business from any losses which would arise from the liabilities within the business. Malpractice insurance also accepts premium deduction. This insurance covers one on personal liabilities for professional ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Business insurance and how it affact on the taxes Essay”, n.d.)
Business insurance and how it affact on the taxes Essay. Retrieved from
(Business Insurance and How It Affact on the Taxes Essay)
Business Insurance and How It Affact on the Taxes Essay.
“Business Insurance and How It Affact on the Taxes Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Business insurance and how it affact on the taxes

Casino taxes

...?Casino taxes lie in the category of entertainment tax with considerable revenue potential. The Internal Revenue Service expects the gamblers to report all their winnings along with their losses on their tax return. This is to be reported as the tax laws require it. In fact, if a person wins a jackpot for twelve hundred dollars or more, the casino takes down the personal information and passes that information with the amount won on to the IRS (Smulik, Roche, & Roche, 2011). The basic casino gaming tax laws which are to be followed by all states including Nevada and New Jersey are the following: Winnings from all types of gambling are taxable and should be declared as income on the tax return, while the losses from gambling... are to be...
3 Pages(750 words)Essay


..., David. Local Tax Policy: A Federalist Perspective. Washington DC: The Urban Institute, 2007. Print. Edwards, Chris. “Economist Debates: Resenting the rich: Statements.” The Economist – World News, Politics, Economics, Business & Finance. The Economist. 2009. Web. 25 May 2011. Veldhuis, Niels, Michael Walker, and The Fraser Institute. Tax Facts 14. Vancouver: The Fraser Institute, 2006. Print.... Assignment Taxation of the Wealthy People Introduction Today, we live in the age of globalization. The concept of freedom is critical to the materialization of a global society. No freedom is viable without economic freedom. The world has witnessed the failure of the planned economy with the fall of the former USSR. However, certain features of...
3 Pages(750 words)Essay

How Taxes Affect Economic Efficiency

...?How taxes affect economic efficiency The topic of potential benefits of taxes on the economic efficiency of a country has gained much attention in the recent years. It is true that various initiatives taken by a government have a significant impact on the scope of economic activities. During the last few years, myriad studies have been conducted on taxes in order to find out whether they have any impact on economic behavior or not (Kroeger 2011). The effect of tax reductions is often debated. According to free market economists, tax deductions result in economic growth. According to Keynesians, tax cuts have a negative...
6 Pages(1500 words)Essay

Avoiding Taxes

...of an individual diminish. 2. Establishing dual citizenship The US government is not in full of dual citizenship as it may bring confusion on the part of a dual-national U.S citizen. Nevertheless, individuals, who have the chance to acquire dual citizenship, make use of this opportunity to lessen their tax obligations. Acquiring a dual status does not totally eliminate tax liability but only limits the obligation depending on the part of the year when an individual is deemed a resident alien or a non resident alien. Notwithstanding, the income, which is not in any way associated with business transactions, in the country, will not make an individual accountable to a tax...
3 Pages(750 words)Assignment

Oil Taxes

..., contractor parties are required to hire the citizens within the framework of need consistent with their operations. They are however enjoined to make contributions to the Social Insurance Fund in the amount of 22% of the gross local payroll. This is tantamount to the Social Security Benefit offered by US and other countries whereby employee share 3% of their salaries to the Fund. Bonus payments which vary for individual PSA's can be paid in three installments whereby an acreage fee of $1,200 to $2,000 is charged per kilometer. Under the PSA contracts, parties are not subjected to any royalties to extraction of resources in Azerbaijan. Foreign and legal entities are however treated as sub-contractors and subject to...
15 Pages(3750 words)Essay


..., the Administration’s proposals would importantly raise the taxation burden on the foreign activities of US companies, which would have substantial implications for all stakeholders and the US economy more largely. On 4 May, President Obama & Treasury Secretary Geithner announced proposals for sweeping changes to the US international tax rules. These changes, if ordained, could noticeably change the competitive position of US multinational businesses from all industries corner to corner. Some descriptions have judged these proposals as aimed at addressing abuses and annihilating loopholes. Putting the labels out-of-the-way, the proposals outset a legitimate fundamental tax policy...
2 Pages(500 words)Essay

General Taxes

...General Taxes Impact of Tax Holidays on North Carolina Yield Impact The yield of the is adversely affected by the sales tax exemption. For example, retailers, revenue departments and local governments are forced to document and monitor the distinction of ineligible and eligible products. The sales tax holiday has resulted in enormous losses each year (Sirot, 2011). Equity Impact Sales tax is the main driver of the upside-down tax system. The middle-income earning North Carolinas (earning around $37,000 per year) pay excise and sales taxes 4 times more than individuals earning more than 1 million U.S. dollars per year....
1 Pages(250 words)Coursework


...Taxes Managing Director Finance Manager 25/07 Vehicles to Minimize Taxes I believe that tax planning is needed to reduce income tax now and in future and all the firms essentially require tax efficient financial planning. In this regard, I would like to identify some available mechanisms that could be used for minimizing of incomes tax, capital gains tax and estate tax. Currently many forms are making use of some remarkable vehicles to reduce taxation on their incomes. For example, whole life insurance is one of those vehicles which contract many tax benefits, i.e. if...
1 Pages(250 words)Essay


...Should the USA lower, raise of maintain its corporate tax rates? Taxes are always a contentious issue in American politics. The two leading parties in the country have their own views on taxes. The Republicans are mostly in favor of tax cuts for businesses, whereas the Democrats generally favor proportionately high taxes for the rich. In my personal opinion I support a progressive tax regime that levies a greater tax rate on corporations and rich individuals. The rationale for this position is the prevailing disparities in American society. Despite being the richest country in the world, the United...
1 Pages(250 words)Assignment

Business Insurance Law Case Study

... Business Operations Management Case Study Business management is often riddled with various dilemmatic circumstances that require the most accurate and well-informed decisions that help improve the operations of the business and its eventual success. Strategies and approaches that the management team uses in addressing some issues can either escalate or reduce the profits margins. It is, therefore, necessary for the businesses to have a team of decision makers who can help it resolve these dilemmas so it can move forward. The insurance industry is one sector that requires tactful approaches in going about the operational challenges that it faces on a...
3 Pages(750 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Business insurance and how it affact on the taxes for FREE!

Contact Us