Health Ins Premium And Medical Expense Deductions For 2014

#1;My CPA tells me that we as a C corporation can no longer deduct our health ins premiums or medical expenses for 2014.

Answers:-

For many years, businesses have picked up health insurance costs, either in full or in part, for employees. The IRS extends a deduction for the expense, whether you are running a limited partnership, a limited liability company, a C- or S-corp or a sole proprietorship. There are rules and conditions on this tax break, as well as a new wrinkle in the tax code that may assist small companies; with the passage of the Affordable Care Act in 2010, the federal government offered a tax credit to small businesses that offered health insurance coverage for employees. With some conditions, small businesses with less than 25 employees could deduct 35 %of their health insurance premiums from 2010 through 2013, and 50 percent of their premiums from 2014 on. The credit is only for employees, not for owners. Businesses with up to 100 employees will be able to buy insurance in the exchanges. In 2014 and 2015, states can limit participation to businesses with 50 or fewer employees. Companies with fewer than 25 workers may be able to obtain tax credits for up to two years of coverage bought through an exchange. States can open the exchanges to large employers in 2017.

#2;My wife and I each own 50% of the corp.We live in Minnesota. We are salaried employees of the corp. We have one non family employee. We have individual health plans for ourselves and our employee. Which the corp has paid 100% of the health ins premium as well as 100% of all medical expenses incurred by the salaried employees( my wife and I ). We have not paid any medical expenses incurred by our nonfamily employee, but have paid his health ins premium. Under the new Obamacare health plan legislation, I believe we are supposed to provide a group coverage health plan, which costs considerably more than our individual plans, as well as subject us to huge premium increases, and we have to pay our nonfamily employee's medical expenses. If we don't follow these new rules, we are subject to substantial fines. Is this correct? If so, is their a way around this? I searched for and read a similar post, but it applied to 2013, before "OBC" .

Answers:-

#2; Businesses with fewer than 50 full-time employees are not required to provide health insurance for their employees under Obamacare. 95% of businesses in this size-range already provide health insurance for their employees, but the cost is usually high and coverage is often slim. If small businesses do not offer health insurance, their employees can go to the state health insurance exchange (as of October 1st) to enroll in a plan. Read more at Ask TaxGuru....