ASSET PROTECTION & TAX REDUCTION STRATEGIES

 

Do you have a successful business?  If so, we can work together to protect your assets, plan for the future and reduce your income tax burden.  We will analyze your current situation and provide recommendations on ways to reduce your taxable income.  This includes: Retirement and benefit plan alternatives Estimated income tax analysis Asset and vehicle deductions Alternative Minimum Tax Accelerated depreciation for buildings New opportunities under the Jobs and Growth Tax Relief Reconciliation Act of 2003 and more! In additional to our traditional tax reduction strategies that have been very effective over the years, we also have the following Asset Protection & Tax Reduction Strategies: Welfare Benefit Plan A welfare benefit plan provides an employer of any size to set up a selective benefit plan or "top hat" plan for a definable group of executives.  The plan provides benefits (Insurance and long-term care) to be provided to this key group of executives on a tax-deductible basis for a corporation (S or C), partnership or LLC.  Benefits: The assets in the welfare plan are sheltered from creditors.  Fixed annual tax deduction for approximately 78% of the contribution amount for the duration of the plan.  The proceeds from a welfare benefit plan can be withdrawn on a tax favorable basis.           Closely Held Insurance Company Closely Held Insurance Company allows for a 100% tax deduction of premium contributions.  Assets grow on a tax-deferred basis and are sheltered from creditors.  Assets coming out of the plan at termination are subject to capital gains tax. Owners of closely held businesses can select who participates in the plan. Benefits: The assets in the insurance company are protected from creditors. Current year tax deductions.    Supplemental Benefit Programs (SBP) The Supplemental Benefit Program allows professionals to use, accounts receivable, which they will be entitled to at retirement, to leverage their retirement savings.  Without this program, accounts receivables are a non-earning asset.  In addition, this income is not available until retirement, the company is sold, or death.  Accounts receivables are also subject to creditors and litigation which can be substantial for professionals.  If the SBP is used, it will allow this non-earning asset to grow on a tax-favored basis, withdrawn on a tax-favored basis and sheltered from creditors. Benefits: The receivables are protected from creditors. The receivables can be leveraged with the potential to earn revenue.    Asset-Transfer with LTC Benefit This program allows a corporation (C or S) to make significant deductible contributions and provide for owners and/or key person lifetime (including their spouse) long-term care benefits.  Eventually, when the owner dies, all deductible contributions taken out of the company will pass to children and/or grandchildren outside of their estate, income tax-free regardless of claims. Benefits: Policy design flexibility Non-ERISA plan, no discrimination testing Tax deduction, tax-free benefits, tax-free return of premium to heirs at death Supported by the tax code Long term care funding vehicle Retirement savings protection Zero Net Cost This program helps individuals, corporations and charities purchase large amounts of life insurance with no or minimal out of pocket cost.  Without this program individuals or entities have to use existing cash flow earmarked for other uses or they have to liquidate other assets.  Zero Net Cost may eliminate the need for either.  This is therefore one of the best leverage tools available for providing estate liquidity, facilitating charitable giving and shelter from creditors. Benefits: Estate tax funding with minimal or no out of pocket expense. Protection of assets from creditors. This is a summary of the asset protection and tax reduction strategies that are available. This summary should not be used to make a final decision on any strategy until we have prepared a comprehensive analysis for your review. If you want a fresh look at the opportunities available, we are here to assist you.  We focus on the programs that benefit successful business owners including business succession planning. Interested?  Contact us at (304) 776-4011 for more information. Someone will be getting your tax dollars this year, wouldn’t you prefer to pay yourself?