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Using Business Dollars For Personal Expenses
Are you aware there are ways to provide benefits for yourself using your business income? What about tax advantages? Have you overlooked any advantages you may enjoy as owner of the business? The fact is, you can actually pay some of your personal expenses using your business' money, and receive favorable tax treatment using these valuable concepts:
Split Dollar Life Insurance Your corporation can help you pay for your own life insurance by "advancing" you money to pay the annual premium. The cost is low and the advance is paid back from the insurance proceeds. You can also make this benefit available to your key employees.
Disability Insurance Your chances of disability before retirement are far greater than your chances of death. Your business can provide you and your employees with personal disability insurance which continues a portion of your salary when you're unable to earn it, and the premiums (in most cases) are tax-deductible.
Section 303 Stock Redemption Your business may be able to help you pay your estate taxes and settlement costs if your stock is worth more than 35 percent of your adjusted gross estate. Under a Section 303 stock redemption, the business redeems some of the stock from your estate and produces cash to meet your estate's obligations. |
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Copyright © 1998 Auerbach & Gussin
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