Which of the following is true regarding medical expense policies owned by sole proprietors?

Which of the following is true regarding medical expense policies owned by sole proprietors?



a. Premiums are tax-deductible, but benefits are taxable.

b. Premiums are not tax-deductible, but benefits are received tax-free.

c. Premiums are tax-deductible and benefits are received tax-free.


Answer: c. Premiums are tax-deductible and benefits are received tax-free.

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