Im new to this so I didn't ask my question very clearly. The company pays for medical insurance for owners. I have had it on the expense side of P & L but was told by CPA that I need to classify it as a non-deductible expense. I don't know how to do that. Im using Quickbooks. Do I keep it on the expense side and there a non-deductible option - or does it go to the balance sheet and additional salary?

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Originally Posted by bam2000

Im new to this so I didnt ask my question very clearly. The company pays for medical insurance for owners. I have had it on the expense side of P & L but was told by CPA that I need to classify it as a non-deductible expense. I dont know how to do that. Im using Quickbooks. Do I keep it on the expense side and there a non-deductible option - or does it go to the balance sheet and additional salary?

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In Quickbooks you set it up as a Current Liability and an expense. Non deductable means you are going to adjust your P&L when it comes time to lodge your return