If your business offers health insurance benefits to employees, there’s a good chance you’ve seen a climb in premium costs in recent years — perhaps a dramatic one. To meet the challenge of rising costs, some employers are opting for a creative alternative to traditional health insurance known as “captive insurance.” A captive insurance company generally is wholly owned and controlled by the employer. So it’s essentially like forming your own insurance company. And it provides tax advantages, too.

September 18, 2017 Stuart Mordfin, CPA, CGMA federal income tax, investment income, health insurance, premium costs, health insurance plans, traditional health insurance, captive insurance, lower administrative costs, commercial health insurance market, coverage package, captive's underwriting profits, commercial health insurance premiums, loss reserves
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In recent years, the IRS has increased its scrutiny of not-for-profits’ unrelated business income (UBI). Dividends, interest, rents, annuities and other investment income generally are excluded when calculating unrelated business income tax (UBIT). However, there are two exceptions where such income is taxable.
August 24, 2017 Stuart Mordfin, CPA, CGMA dividends, tangible personal property, interest, investment income, real estate, income producing asset, income producing property, controlled nonprofit, nonprofit, UBIT, unrelated business income, rents, annuities, unrelated business income tax, debt financed property, stocks, borrowed funds, acquisition indebtedness, unrelated trade or business, research activities, volunteer workforce, donated merchandise, neighborhood land rule, controlled organizations, for profit subsidiary, beneficial interest
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In the quest to reduce your tax bill, year end planning can only go so far. Tax-saving strategies take time to implement, so review your options now. Here are three strategies that can be more effective if you begin executing them midyear:
August 12, 2017 Stuart Mordfin, CPA, CGMA medical expenses, kiddie tax, deductible expenses, defer income, net investment income tax, affordable care act, tax rate, married filing jointly, investment income, capital gains rate, modified adjusted gross income, NIIT, tax saving strategies, income producing asset, consider your bracket, shift income, health insurance premiums, taxible income, head of household, married filing seperately, parents marginal rate, unearned income, dependent child, depreciated investments, generate losses, MAGI, long term care insurance premiums, medical services, dental services
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Each year, millions of taxpayers claim an income tax refund. To be sure, receiving a payment from the IRS for a few thousand dollars can be a pleasant influx of cash. But it means you were essentially giving the government an interest-free loan for close to a year, which isn’t the best use of your money.