Strategy of the month

by Michael Bronstine

Profile:

• Shareholder of private corp. age 65+
• Comfortable with complex tax planning involving leverage
• No intent to divest their shares
• Prefers locked-in planning strategies
• Desire to maintain current business activities
• Corporation has steady cash flow
• Corporation has sufficient taxable income to use deductions

You tadalafil price appalachianmagazine.com need to ensure sound sleep, drink plenty of water, reduce stress levels and consume zinc rich diet to get large semen volume. Even though in some sans prescription viagra cases it is reversible, it is considered that diabetes is behind the cause. It is a pharmaceutical order generic levitra product manufactured by Ajanta pharmacy and delivered in different parts of the world. Eventually they then fail to make the desired erections and that is the enzyme called PDE5 which basically stops or blocks the blood from passing ahead to viagra ordination look these up the penis at the point of mental arousal it becomes difficulty to attain firm or lasting erections.
Primary concerns:

• Tax efficient investing
• Cash flow constraint
• Generate a credit to the CDA to reduce capital gains tax on shares at death

Strategy:

• Corporation uses surplus cash to fund a non-prescribed annuity
• Corporation purchases a life insurance policy
• Policy and annuity are assigned as collateral for bank loan
• Borrowed funds invested to produce income
• Annuity provides a stream of payments for life
• Annuity payments fund the life insurance policy and pay loan interest
• Tax is paid on annuity income and deductions generate tax savings
• At death insurance proceeds repay debt

Benefits:

• Maintain company’s working capital and investments
• Increase corporate cash flow
• Loan interest is deductible
• Potential to reduce capital gains tax liability on shares at death
• Proceeds generate credit to CDA

NOTE:

While this strategy works best for those at age 65 and over, the earlier the life insurance policy is purchased the greater increase on cash flow will occur.  This of course is a function of lower costs associated with the policy.

To discuss this strategy please contact:

Michael Bronstine

MANAGING PARTNER