It is not always possible to pay the insurance indemnity for the code that originated in it, as a partially closed chapter. In some cases, you must fully withdraw. Especially if you are a self-employed and an entrepreneur.
Although there is a very wide range of insurance, the basic nature of insurance in general is the same – the fear of adverse events, which may be liquidated for individuals. The first bond allows the team, which somehow does not meet, to get full to compensate for the damage. The majority will not receive anything from the insurance company and only the salary of the insurance. How do the beneficiary pay two taxes? When does he have to think about the insurance indemnity?
We will find a hunter today who should not volunteer at all. Most often, people insure their most valuable assets from houses, apartments, households, cars. In addition to property insurance, people can take out, for example, insurance liability for the code. Let’s leave aside today the life insurance, which we have addressed on this server in many previous comments, for example HERE.
In general, the insurance indemnity is exempt from property insurance with the exception
The right to income, such as the insurance benefit and the compensation code, is covered by paragraph 4, paragraph 1, letter d of the Income Tax Act. According to this provision, the following are exempt from income tax for natural persons:
- Massage nhrada kody
- Compensation for non-property property
- Full of insurance assets
- Plnn with a clear answer for the code
The exemption cannot be applied in the case that the full nature of the compensation for the loss of income or is the full benefit of the insurance property, which was or is included for the performance of business or other independent activities and rent..
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Fulfill the property code to pay attention to rent and property in the business
We most often insure real estate, equipped households or a car from property insurance. The property is insured against various risks, equipped households and the car can also be insured against the house.
Name the full property insurance on a simple example:
Mr. A owns two apartments, one for own living and the other for rent. In addition, I have my own car (not included in the business) and sometimes to use the mileage for its use for business. In addition, the company as a self-employed and in a company-supplied van, with which two employees ride. In the first half of 2007, thieves robbed him of both flats, and at the same time, the full amount of accident insurance was paid out on both cars. How do daov duties wait for him?
1 / Insurance indemnity from the property code of the apartment in which he lived
The insurance indemnity from his own apartment, which is not solely for employment, will be exempt and Mr. A will not state this income anywhere in the tax return.
2 / Insurance indemnity from the property codes of the apartment, which is rented
The insurance company paid out the income from the equipment of the rented apartment. This apartment is used solely for the purpose of activity (even if it is not included directly in the commercial property), or Mr. A taxes the income from rent in the framework of a long tax deposit (paragraph 9 business income). In this case, Mr. A must include the paid insurance premium in the income within his tax return.
3 / Insurance indemnity from his own car, which he will use for business purposes
The benefit from the accident insurance for a car not included in the commercial property is exempt even in the case of occasional use for business and mileage. It follows that the insurance benefit will not be charged in any way by Mr. A income tax.
4 / Insurance indemnity from a car started in the company
In the case of the received full payment under the identified number, Mr. A’s business is not discussed and its value will be included in business income.
Fulfillment of the insurance liability for codes must not be related to business activity
The very responsibility of the code is perceived by citizens as something a bit unnecessary. We are still afraid of property damage, not hypothetical, as is caused by the code. Insurance liabilities are often offered by insurance companies together with the insurance household, in addition to insurance premiums in many non-assets of the insurance household. Bad, of course, for everyone, but I personally consider the responsibility to be a good thing.
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If the citizen has concluded a liability and the actual code and subsequent indemnity occurs, he must examine whether the indemnity is in any way related to business activity. If there was a connection, the income would have to be taxable within the tax return. Otherwise, the insurance benefit would be exempted.
We can argue about whether it makes sense to connect at all or not. From the point of view of statistics, the insurance is very rational, or the probability of the occurrence of the first name is relatively small and the insurance premium is relatively high. On the other hand, on this simple ratio, the whole business is insured and the insurers of this in St. However, if you reduce your risk with insurance, and with the exception mentioned, the insurance is fully exempted and you can wipe it in your pocket, you would not even have to remove the plates.