Life insurance premium tax deductible

[Jill Iwanski]

My question today is the life insurance premium we are contractually obligated to carry tax deductible. Long story short, as part of a land contract we have to carry life insurance equal to or greater then the amount we owe the seller. The land contract has a principle amount owed of $1.5mil. We have also borrowed $300k from this individual for another property making the total owed $1.8mil. We have a $2mil policy. As I understand the tax law we should be able to deduct the premiums because we had to buy it to honor the contract and we are not the beneficiaries of the policy. Our accountant is saying we can’t us it as a deduction. Any advise would be greatly appreciated. Thank you.