Assume the following situation:
My wife and I own a LLC in a community property state. (50/50) We are self-employed and have no employees. Under this arrangrement, business income flows through to personal return.
Let's assume, my wife and I each generate $12000 in profits through self-employed work (freelancer) under the LLC umbrella, for a total of $24000. We have health insurance through an exchange plan. The plan is in my name. Health insurance costs are $24000 annually.
I know that I can deduct health insurance premia up to the profits from my business.
But, what is the right number here for business profits: $12000 (what I contributed through my work to profits from our jointly owned businss) or $24000 (profits from both me and my wife operating through the LLC).