3LT
Level 2

Scorp, pro motorcycle rider 100% shareholder, rider becomes injured, yearly scorp pays for an injury policy  through Lloyds of London. Pays 80,000 a year for policy of which Scorp expenses the 80g. 

The shortened season after injury produces a claim for 291,000. Is it taxable? Or is the Corporation able to show it tax free?

0 Cheers
sjrcpa
Level 15

S Corp receives the money?

Or the rider?


The more I know the more I don’t know.
BobKamman
Level 15

Taxable to the corporation

View solution in original post

3LT
Level 2

The Scorp received the money.