Welcome to this month's edition of the Tax and Business Alert. Our goal is to provide
you with current articles on various tax and business topics. The articles are
intended to keep you up to date on trends and issues that may impact your business
and personal financial affairs. Please contact us if you have questions about any of
the issues discussed.
Life Insurance as a Source of Funds for the Terminally Ill
An individual who is terminally or chronically ill and lacks funds to cover
significant medical (e.g., experimental treatments) and other family expenses may
find the solution through his or her life insurance policies. Although insurance
policies have historically been held for the death benefits, some policies now
include an accelerated death benefit (or living benefit) rider.
Important upcoming tax dates.
2014 Social Security Wage Base
The Social Security Administration announced the wage base for computing social
security tax for 2014 will increase.
IRS Modifies FSA Use-it-or-lose-it Rule
Health Flexible Spending Account (FSA) contributions left over at the end of a plan
year are forfeited to the employer under the "use-it-or-lose-it rule," ... However,
the IRS will allow employers, for the first time, to amend their Section 125
Additional 0.9% Medicare Tax
Individuals must pay an additional 0.9% Medicare tax on earned income above certain
Structuring a Tax-free Incorporation
When forming a corporate entity, one method of capitalization is through a tax-free
(actually, taxdeferred) exchange. Properly transferring property to a corporation
delays the recognition of any gain on that property until a taxable event occurs
(e.g., sale of the property or stock of the corporation, or liquidation of the
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distributor are not rendering legal, accounting or other professional advice or
opinions on specific facts or matters, and, accordingly, assume no liability
whatsoever in connection with its use. The information contained in this newsletter
was not intended or written to be used and cannot be used for the purpose of (1)
avoiding tax-related penalties prescribed by the Internal Revenue Code or (2)
promoting or marketing any tax-related matter addressed herein. © 2014