BEST TAX RELIEF ATTORNEY

Term life insurance provides insurance for a specific amount of time. Like, for one year. You can usually renew annually, and this is called “Annual Renewal Term”. This works until about age 80. Level Term offers you a level premium for a fixed amount of years. You lock in a rate for 20 years. Then you have to get a new rate or new policy.

Permanent Insurance is also called whole life, universal life, etc. This form of life insurance also has a built in savings plan. You get a death benefit with a cash value savings plan attached. Of course, this plan is more expensive, but allows for some financial latitude.

You may be wondering why you would need insurance and what could you do with the proceeds if your spouse or loved one died. Here are some ideas that would help with the financial loss.

Income. Even if your spouse works, loosing one salary could be devastating.

Housing. The money could be used for rent or payoff the mortgage. Your spouse may not want to stay in the house, but it will give some options for them.

Debt. Reducing debt due to the loss can help the surviving spouse continue to be financially solvent. This will help your spouse survive on one income.

Pay Expenses. Funeral and hospital bills can be tremendous. The average funeral is $6,000.

Social Security. Its there, but it takes a while for it to kick in so to speak. Better cover yourself until that first check arrives.

Education. Think about the high costs of education and the burden that would be with only one income. Account for an educational nest egg to give your kids a head start.

Charity. If you don’t have anyone, this would be a good option. Also, you can get a tax deduction for the rest of your estate if you give some money away. In other words, give a chunk away and you might be able to keep some assets to give to your family.

Taxes. Two things certain. Death and Taxes. You may have to pay taxes on your 401k and other assets even though you are dead. If you don’t get these assets before you die, then the person receiving the benefit must pay the tax.

These last two items are a bit tricky and would require expert assistance from a tax attorney or estate attorney.Think about your family and decide what type of life insurance would protect them the best. Let me know if you can think of other helpful information on what to do with life insurance proceeds.



By: John Tahan

Taxes are your biggest expense in your lifetime, so choose your source of income wisely! Real estate has some of the BEST TAX BREAKS of any investment in America!

The more you earn through your job, the more you get taxed, and the system is setup that way to punish hard workers and reward investors. Have you looked at the bottom stub of your paycheck lately and seen how much the government steals from you? Wage income not only requires work, it gets taxed at a very high rate, plus the government takes FICA, which is put into a system that may be bankrupt when you retire.

Body Text: Real estate has so many tax advantages over wage income:

Capital Gains Rates

The maximum federal tax rate on capital gains is 15%, whereas wage income is taxed at 35%. There’s state taxes, too, and some states offer further discounts on capital gains income. Remember, capital gains requires that you hold a property for 12 months or more before selling and that it was held for productive use (i.e., as a rental, no a long-term fix and flip).

Exemption for Principal Residence

If you sell your residence, the first $250,000 is exempt from gain or $500,000 if you are married. Remember, this requires that the residence was used as such for two of the last five years.

1031 Exchanges

Under IRC Sec 1031, you can roll your profits from a rental property into more real estate and defer paying taxes altogether. Your tax basis rolls into the next property. The rules are rather stringent, in that the exchange must be completed with 180 days and the exchange property must be indentified with 45 days of the sale of the relinquished property (more info at www.1031x.com).

Interest Deduction

You get to deduct interest you pay on debt you have used to acquire your real estate.

Depreciation

For rental properties, you get a tax deduction for the “wear and tear” on the structure, even if the property increases in value! Thus, you can actually break even or make money, but on paper show a loss to offset other income.

No FICA Tax

Your income from real estate is general NOT subject to FICA tax withholding. Regular self employment income is subject to 15.3% tax on the first $97,000, and thereafter your earned income is subject to medicare withholding (which you may never get back in your lifetime the way things are going!).

It’s not just what you make, it’s what you keep… plan wisely where your income comes from, and you will keep a lot more.

Click Here for more info for Reduce Taxes

Written exclusively for Legalwiz.com by Attorney William Bronchick, Certified Registered Nationally-known attorney, Author, Entrepreneur and Speaker.



By: Attorney William