re: Insurance Deductions for Small Business

Make your wife an employee. Give her a W-2.

Put the health insurance in her name.

Set up a Section 105 health plan. (Cost around $400/yr). Fund plan.

Wife seeks reimbursement from plan of both medical insurance premiums AND medical expenses.

Plan reimburses her.

Company gets to deduct 100 percent of the health insurance AND medical payments on Schedule C, saving both income and S/E tax.

Now, if you do this, you have to do it for each employee. So, if you have employees other than your wife, this might not be as attractive to you.

Self-employed health insurance deduction doesn't work if your wife had access to insurance at work AND could cover both of you.

EDIT: To clarify, if you have employees, you could still do this plan and get the deduction, however, you might not want to offer payment for medical expenses, you might want to limit it only to medical insurance (if you want to cover the other employees insurance)