Hi there, where do you report the deduction of proceeds on a corporate owned life insurance policy? Is it just a general Schedule 1 adjustment, or is there a specific place to record the deduction from income for tax purposes?
I’m confused. Why would you DEDUCT the PROCEEDS of a life insurance policy? Isn’t proceeds generally money coming in and deductions generally money going out?
In the past, where I’ve included the proceeds in income for financial statement purposes, I’ve entered a deduction on line 390-394 (Other deductions) of S1 and have entered the amount with the description “Gain from life insurance proceeds included in revenue”. I’ve never had CRA ask for more information.
1 Like