Life Insurance Advice
Article:
Two kinds of risks exist for advisers giving advice to their clients about life insurance
Published on January 28, 2011
Reporting Life Insurance Transactions by S Corporations
Article:
There is room for disagreement, if not confusion, over how to report transactions involving life insurance on the tax returns of S corporations
Published on August 01, 2012
Guidance on S Corporation Life Insurance Premiums Raises Questions
Article:
The IRS recently issued long-awaited guidance on the treatment of life insurance premiums paid and life insurance proceeds received by an S corporation
Published on May 10, 2010
Taxability of Employer-Owned Life Insurance Contracts
Article:
Sec. 101(j)(1) limits the amount of tax-free treatment a person (which can be any type of entity) can receive from the proceeds on an employer-owned life insurance (EOLI) contract
Published on January 28, 2011
Guidance on Sales and Purchases of Life Insurance Contracts
Article:
The IRS released two revenue rulings that provide guidance for sellers and purchasers of life insurance contracts
Published on January 28, 2011
Tax Court Rules on Valuation of Life Insurance Policy in Bargain Sale
Article:
The Tax Court held that where the profit-sharing plan of an S corporation wholly owned by the taxpayers distributed to them a life insurance policy on their lives, the taxpayers could not reduce the taxable value of the policy by the amount of the surrender charge for purposes of determining
Published on January 28, 2011
Income from Sales or Settlements of Life Insurance Contracts
Article:
The IRS has provided guidance on the amount and character of income that taxpayers recognize in the surrender or sale of life insurance contracts and has provided guidance to purchasers of life insurance contracts for profit
Published on January 28, 2011
Pension Rescue and the Fair Market Value of a Permanent Life Insurance Policy
Article:
...Pension rescue” is a sales concept used to help sell life insurance. The problem with pension rescue is that it is based on a valuation of the life insurance policy that may not hold up to IRS scrutiny
Published on November 30, 2012
Two Recent Revenue Rulings Clarify Tax Treatment of Life Settlements
Article:
The IRS issued two revenue rulings discussing the taxation of life settlement transactions. Rev. Rul. 2009- 13 clarifies the tax implications of the surrender or sale of a life insurance policy by the original policyholder, while Rev. Rul. 2009-14 discusses the tax ramifications of certain transactions to an investor who
Published on July 13, 2012
Guiding Clients Through the Transfer-for-Value Maze
Article:
...Editor: Michael David Schulman, CPA/PFS One of the most attractive aspects of life insurance as an estate and financial planning tool is the tax treatment of the death proceeds. Generally, the proceeds of a life insurance policy received by a beneficiar
Published on May 12, 2010
Wealth Management Insider - November 18, 2010
Article:
The AICPA Wealth Management Insider delivers news of the profession and its regulations, commentary, recommended products and professional development resources to CPAs who currently provide financial planning services or are looking to expand their practice in this area.
Published on October 26, 2012
Court Rules on Sale of Ownership Rights in Insurance Company Demutualization
Article:
...trust was entitled to a refund of taxes paid on the proceeds of the sale of stock the trust received in exchange for its ownership rights in a mutual life insurance company when the company was demutualized
Published on March 11, 2011
Life Settlements
Article:
...proceeds has been unclear until recently. However, the IRS issued guidance during 2009 that clarifies when and to what extent policyholders must recognize capital gain when they sell a life insurance policy
Published on January 28, 2011
The Funding Dilemma Retirement or College
Article:
Editor: Michael David Schulman, CPA/PFS At a recent meeting, a client wanted to talk about paying for his child’s college costs for the upcoming spring semester. When asked if he had any retirement savings, he answered that he had a small amount in a whol
Published on July 13, 2010
Financing Premiums vs. Paying Cash
Article:
...publication, on January 1, 2011 the top federal estate tax for estates over $1 million ($2 million per couple) will be 55 percent. Many advisors recommend that clients purchase life
Published on January 28, 2011