Tis the Season to Discuss Tax Deductions
It may just now be fall, but many small-business owners already have their eye on that crisp, cool day in April when they get to send a check to the IRS.
So, now is the perfect time for you to show them ways to keep more of the money they earned this year in their pocket. One of the most efficient and financially responsible methods is to purchase long-term care insurance.
Long-term care insurance is a discriminable benefit that can be deducted. They don’t have to provide it, or even offer it, to their employees in order to take advantage of this tax deduction. A class could be as small as the employer themselves, or an employer and their spouse.
Small-business owners can deduct 100% of their LTC premiums up to maximums shown on the chart below for themselves and their spouses. That means a couple, both age 55, could deduct up to $1,630 per person of their long-term care insurance premium. Savings over $3200 going to the IRS
If your client happens to own a c-corporation, the benefits are even greater. Say goodbye to the caps above. The premium is 100% deductible. Period. Great opportunity to talk to them about paying up their LTC coverage with a 10pay and really maximize their deductions.