May 10, 2025
We wanted to share an advanced strategy that could be worth considering as part of your overall tax and risk management plan: Financed Business Insurance. Here’s a quick overview:
- The structure uses leverage (approximately 5.4-to-1) to create large, immediate tax deductions relative to the actual cash invested.
- Typically, for every $100K of actual out-of-pocket costs, you could see around $540K in deductions.
- The insurance coverage is issued through a publicly traded European carrier, offering strong protection without the need to set up a captive insurance company.
Beyond the immediate tax benefits, this strategy can also help with:
- Asset protection from business risks
- Estate planning and liquidity
- Business continuity strategies
It’s generally best suited for clients with $500K+ AGI, and it’s important to implement the structure early enough in the year to fully capture the available benefits.
If you think this might apply to you based on your income or goals for this year, feel free to reach out. We’re always happy to review how it could fit into your broader strategy. As always, our goal is to keep you informed about available options and help you make decisions that best align with your overall plan.
Are you a business owner that could benefit from our tax strategies?
Go ahead and click this link to discuss…calendly.com/woodbury-finance/tax-strategy
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