Life Insurance Is NOT a Financial Service: New IRS 199A Tax Deduction Regs

January 22, 2019 by Allison Bell

The Internal Revenue Service has released final regulations that should help life insurance agents get a big new federal income tax deduction — by classifying life insurance as not being a financial service.

The IRS says it generally will exclude sales of commission-based insurance policies when deciding whether a business owner can qualify for a new “qualified business income deduction.”

But the final regulations leave open the possibility that agents and brokers who generate large amounts of fee revenue from selling life insurance or annuities could end up losing access to the new deduction.

Click HERE to read the full story via ThinkAdvisor.

Originally Posted at ThinkAdvisor on January 22, 2019 by Allison Bell.