Ark. Code R. 26-51-423 - 1(a)(1) (1997) - Business Expenses - Long-term Care Insurance Premiums

A self-employed taxpayer can deduct as a business expense on U.S. Form 1040, Schedule C, a percentage of the premiums paid during the tax year for "qualified" long-term care insurance. The definition of "qualified" long-term care insurance is set forth in IRC Sec. 7702B(b)(1). The applicable percentage begins with 40% for the 1997 tax year and increases up to a maximum of 80% in 2006. The percentages are as follows:

1997 .................

40%

2004 .....................

60%

1998 through 2002 ..........

45%

2005.......................

70%

2003 ..................

50%

2006 or thereafter.......

80%