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When a disability buy-sell is funded by the partnership, what is the tax liability?

User Chendu
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Answer:

When a disability buy-sell is funded by the partnership, there is no tax liability. The reason is because the premiums used to fund a buy-sell agreement are not tax deductible. The premiums paid by a partnership business, where the shareholder or the owner is the insured, are not considered taxable income.

User Nilsole
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