Happy Anniversary, 101(j)

Welcome to the Advanced Markets Minute in audio form. Today’s article is called “Happy anniversary 101(j)”

Tax Code section 101(j) applies to employer owned life insurance policies. The most common employer owned policy situations are key employee, entity buy sell and deferred compensation.  The statute’s opening language sounded very dramatic: the death benefit on an employer owned policy shall be taxable above the owner’s cost basis in the policy! But reading on, there are enough exceptions to that rule to cover most normal uses of business owned life insurance.  Click Here to access the recording.