How the new wealth taxes will hit you and what you can do about them
A recent article in the Wall Street Journal examined some of the new wealth taxes and experts made some recommendations to minimize these taxes.
I’ve been recommending business owners and professionals take advantage of the strategies suggested for years.
Their recommendations were:
- Reconsider a defined benefit pension. Meaningful changes aimed at business owners and professionals were enacted a few years ago that raise deductions as high as $250,000 per year providing you with an efficient tax management tool few advisors and CPAs are aware of. Convert tax liabilities into new investment capital helps to ensure an increase in personal wealth and financial success beyond anything else you’ve engaged in.
- Taxpayers selling assets should consider installment sales. Frankly, there are other strategies more beneficial such as making up to half of the purchase price a tax deductible event for the purchaser saving the buyer millions of dollars. By altering the financial consequences for the purchaser, this strategy helps to ensure you’ll obtain your full asking price even in an economic downturn.
- Life insurance is still one of the more attractive benefits which not only protects one’s family but depending on how it’s incorporated into a strategy can efficiently provide living benefits unlike any other product because of its tax preferential treatment on tax related and business succession issues.
Don’t put off contacting me to find out more about some of these alternatives and how you can benefit.
If I save you as little as $50,000 a year what other inquiry could you possibly give you this type of return?