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Are proceeds from life insurance policies taxable income for a C Corporation?

No. If the C corporation is listed as the beneficiary, then any proceeds from life insurance policies would be considered nontaxable income (refer to #2 under nontaxable income on the right).

On the contrary, the life insurance premiums paid are only a deduction for the C Corporation if the employee/executive are listed as the beneficiary. Life insurance premiums would not be deductible if the company is listed as the beneficiary.


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