Lucrative Deductions May Be Available if You Have LTC Insurance, or Plan to Get It
KIRKLAND, WA (SEND2PRESS NEWSWIRE) -- One of the biggest overlooked sources of tax breaks is long-term care insurance, according to LTC Financial Partners LLC, the nation's leading agent-owned LTC insurance brokerage. Premiums for tax-qualified policies are deductible as personal medical expenses for taxpayers who itemize, with 2005 amounts ranging from $270 to $3,400 per person, based on age. Some states offer additional deductions or tax credits on state returns.
"It's time to check with your financial adviser, or start planning for tax savings next year," says Cameron Truesdell, CEO. For businesses, executive carve-out plans offer these advantages:
* The company can deduct the cost of LTC premiums.
* Long-term care insurance is not subject to discrimination testing, which allows an employer to "carve-out" selected key employees.
* The total premium paid by the employer for an executive's coverage is not included in the executive's taxable income (with some exceptions).
* Benefits paid to an executive from a tax-qualified policy are generally tax free.
"If a company is sitting on retained earnings, now may be the time to put some of it to good use," says Truesdell.
This reminder is an interpretation of current law and is not intended as legal or tax advice. "We recommend checking with your legal or tax professional," says Truesdell. As long-term care insurance specialists, the partners of LTC Financial Partners work with financial advisers across the nation, often in conjunction with financial institutions and associations.
Detailed information, based on state of residence and other factors, is offered free of charge to companies, the general public, and financial advisers: www.eranova.com/LTCFP/tax-reminder.htm
LTC Financial Partners LLC offers policies from multiple carriers, including MedAmerica, MetLife, John Hancock, Physicians Mutual, Prudential, Allianz, UnumProvident, and Penn Treaty. LTCFP was founded in April, 2003 by Cameron Truesdell and Craig Smith, who were both principals of LTC Inc., a pioneering brokerage in the long-term care field. That company was sold to GE Capital.
*(Photo Caption: Photo of Cameron Truesdell.)