Comments on: How To Withdraw Money From Your Holding Without Paying Taxes – The Split Dollar Strategy http://www.thefinancialblogger.com/how-to-withdraw-money-from-your-holding-without-paying-taxes-the-split-dollar-strateg/ This is where your finance takes place Mon, 15 Mar 2010 14:47:09 +0000 http://wordpress.org/?v=2.9 hourly 1 By: The Financial Blogger | The Benefit of Critical Illness Insurance http://www.thefinancialblogger.com/how-to-withdraw-money-from-your-holding-without-paying-taxes-the-split-dollar-strateg/comment-page-1/#comment-4633 The Financial Blogger | The Benefit of Critical Illness Insurance Thu, 29 Jan 2009 11:31:26 +0000 http://www.thefinancialblogger.com/?p=1095#comment-4633 [...] few days ago, I explained the split dollar strategy and give an example of this tax strategy showing how critical illness insurance can help you out [...] [...] few days ago, I explained the split dollar strategy and give an example of this tax strategy showing how critical illness insurance can help you out [...]

]]> By: Carnival of Personal Finance No. 188: The Jane Austen Edition | Pecuniarities http://www.thefinancialblogger.com/how-to-withdraw-money-from-your-holding-without-paying-taxes-the-split-dollar-strateg/comment-page-1/#comment-4504 Carnival of Personal Finance No. 188: The Jane Austen Edition | Pecuniarities Mon, 19 Jan 2009 14:03:45 +0000 http://www.thefinancialblogger.com/?p=1095#comment-4504 [...] The Financial Blogger presents How To Withdraw Money From Your Holding Without Paying Taxes - The Split Dollar Strategy [...] [...] The Financial Blogger presents How To Withdraw Money From Your Holding Without Paying Taxes – The Split Dollar Strategy [...]

]]> By: Richard http://www.thefinancialblogger.com/how-to-withdraw-money-from-your-holding-without-paying-taxes-the-split-dollar-strateg/comment-page-1/#comment-4420 Richard Wed, 14 Jan 2009 11:55:35 +0000 http://www.thefinancialblogger.com/?p=1095#comment-4420 As I said, it sounded similar. The way your suggesting sounds like how we down here can use LTC as a business expense (tax write off) to the owner/spouse as well as employees. As for benefits, well, they get paid directly so they should not be (I'm not a tax guy by any stretch) taxable to the beneficiary, but to the recipients. However, returning of premium down here is just that, a return of premium paid. I'll double check to see if it gets returned tax free (I believe it does) since insurance premiums can be tax deducted and still come back tax free for some strange reason. As I said, it sounded similar. The way your suggesting sounds like how we down here can use LTC as a business expense (tax write off) to the owner/spouse as well as employees.

As for benefits, well, they get paid directly so they should not be (I’m not a tax guy by any stretch) taxable to the beneficiary, but to the recipients. However, returning of premium down here is just that, a return of premium paid.

I’ll double check to see if it gets returned tax free (I believe it does) since insurance premiums can be tax deducted and still come back tax free for some strange reason.

]]> By: The Financial Blogger http://www.thefinancialblogger.com/how-to-withdraw-money-from-your-holding-without-paying-taxes-the-split-dollar-strateg/comment-page-1/#comment-4419 The Financial Blogger Wed, 14 Jan 2009 11:47:58 +0000 http://www.thefinancialblogger.com/?p=1095#comment-4419 Richard, the premium is tax deductible for the company, therefore not paid with after tax dollar. The benefit receiving the premium is taxed in the end of the company owner. However, the tax rate in Canada is very minimal. As I said, I'll come back with real calculation to show you the magic behind the split dollar strategy. However, I have no clue if it works in USA... Richard,
the premium is tax deductible for the company, therefore not paid with after tax dollar. The benefit receiving the premium is taxed in the end of the company owner. However, the tax rate in Canada is very minimal.

As I said, I’ll come back with real calculation to show you the magic behind the split dollar strategy. However, I have no clue if it works in USA…

]]> By: Richard http://www.thefinancialblogger.com/how-to-withdraw-money-from-your-holding-without-paying-taxes-the-split-dollar-strateg/comment-page-1/#comment-4418 Richard Wed, 14 Jan 2009 11:26:41 +0000 http://www.thefinancialblogger.com/?p=1095#comment-4418 Sounds very similar to the Return of Premium rider on some Life Insurance policies. Probably costs a bit more. That being said, the reason for the money coming back tax free is because the money was ALREADY taxed going into the policy. Sounds very similar to the Return of Premium rider on some Life Insurance policies. Probably costs a bit more. That being said, the reason for the money coming back tax free is because the money was ALREADY taxed going into the policy.

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