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We all know to save for a rainy day or a hurricane such as Sandy and Katrina. But did you know Congress provides tremendous tax savings if you do.
During the Great Depression, Congress passed tax laws to encourage farmers to have their private insurance company.
During these hard times, insurance becomes expensive as capital becomes scarce.
After World War II, Congress expanded the tax law to cover small businesses. President Regan signed into law a $1.2 million annual tax exemption for private (captive) insurance companies.
The Wealthy have used private insurance companies for more than fifty years. By forming your own company, you can buy insurance wholesale (this is known as re-insurance).
You also control your risks and claims. Toss in $1.2 million of annual tax free income and you can see how the Wealthy become wealthier.
Learn about offshore versus onshore (such as Arizona and Utah) companies and creating wealth this this 15 minute episode.
Brian Dooley, CPA, MBT and Jeff Verdon, Esq. provides the nuts and bolts in this short Tax Talk show.
It's good to talk.