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the next FDIC premium assessment.” The majority concurs: “[W]e
understand the entrance fee to be paid for the current year’s
insurance.” Majority op. pp. 21-22.
Neither petitioner nor the majority has convinced me that
the entrance fee was a deductible insurance premium. Therefore,
I do not believe that petitioner has carried its burden of
showing that payment of the entrance fee meets the prerequisites
for a deduction under section 162(a).
3. Discussion
Certain business-related insurance expenses unquestionably
are deductible under section 162(a). See, e.g., sec. 1.162-1(a),
Income Tax Regs., discussed supra in sec. III.A. Not all
business-related, annual insurance premiums, however, are
deductible under section 162(a). See, e.g., Commissioner v.
Lincoln Sav. & Loan Association, 403 U.S. 345 (1971) (disallowing
deduction for “additional premiums” (prepayments of future
premiums) paid by taxpayer to Federal Savings and Loan
Association); Commissioner v. Boylston Mkt. Association, 131 F.2d
966 (1st Cir. 1942) (disallowing deduction for prepaid insurance
premiums), affg. a Memorandum Opinion of this Court dated
November 6, 1941. In Black Hills Corp. v. Commissioner, 101 T.C.
173 (1993), Supplemental Opinion at 102 T.C. 505 (1994), affd. 73
F.3d 799 (8th Cir. 1996), we disallowed deductions for those
portions of annual premiums paid for black lung insurance that
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