In Chief Counsel Advice 200623001, the IRS clarifies it position that the sole proprietor deducts his or her health insurance costs on the front of IRS Form 1040 (line 29 on the 2005 Form 1040). It does not matter whether the insurance is purchased in the name of the proprietorship or of the individual. Further, the deduction includes insurance for the proprietor, spouse, and dependents.

That’s what the law says, so we don’t see any confusion here. But the Form 1040 ... Log in to view full article.