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Tax Strategy for the Week (November 1st, 2013)

Funding a Buy-Sell Agreement
 
Tax Issue

Buy-sell agreements are part of a succession plan put in place to protect the financial interests of the owners and their heirs and to protect the company’s stability in case of an untimely death of one of the owners. The agreement is a legally binding contract that determines who can buy an interest in the company, how much the deceased owner’s share in the company was worth, and whether or not the estate of the deceased must sell.

However, the agreement itself does not fund the buyout. The surviving business partner(s) must come up with the […]

Tax Strategy for the Week (October 25th, 2013)

Funding a Buy-Sell Agreement
 
Tax Issue

Buy-sell agreements are part of a succession plan put in place to protect the financial interests of the owners and their heirs and to protect the company’s stability in case of an untimely death of one of the owners. The agreement is a legally binding contract that determines who can buy an interest in the company, how much the deceased owner’s share in the company was worth, and whether or not the estate of the deceased must sell.

However, the agreement itself does not fund the buyout. The surviving business partner(s) must come up with the […]

Tax Strategy for the Week (August 16th, 2013)

Last Money
 
Tax Issue

A retired taxpayer with sufficient income and assets often seeks ways to maximize the estate that will be left for heirs. The impact of taxes plays a major role in planning for the distribution of estate assets.

Applicable Tax Law

Gain on investment value within a permanent life insurance policy is not taxed as long as the gain is left within the policy.
Death benefits on a life insurance policy are generally paid to the beneficiary free from income tax.
If the cumulative premium payments exceed certain amounts specified under IRC section 7702A, the policy will become a Modified Endowment Contract […]