How insurance can be used as a tax avoidance device

Reference no: EM131431260

Insurance policies often are a combination of a savings program and life insurance. The individual pays the company, say, $1000 a year; $100 of that goes to cover the risk of his dying during the year, and the remainder goes into a savings program. The return on the amount in the savings program accumulates free of tax-just like an IRA. Explain how insurance can be used as a tax avoidance device.

Reference no: EM131431260

Questions Cloud

Describe each of the three expressions : Describe each of the three expressions of this theme you have chosen, embedding images if possible. This must be three different disciples of humanities

Determine the critical buckling stress : Determine the critical buckling stress (fcr) of a 3-inch-diameter column that's 150 inches high, and pinned at the top and bottom. The column's material has a modulus of elasticity of 1.5 x 1061 psi

Explain the role of location in the rich or poor gap : Explain the role of location in the Rich/Poor Gap. Impact of landlocked countries on Rich/Poor Gap. Role of distance and geography on economic development.

What suggestions would you make to him about how to improve : If you were helping David with his coaching, how would you describe his strengths and weaknesses? What suggestions would you make to him about how to improve?

How insurance can be used as a tax avoidance device : Explain how insurance can be used as a tax avoidance device.

Which assets are likely to decrease in value : The adoption of a consumption tax would have a significant effect on the market value of certain assets. Which assets are likely to decrease in value? Which to increase in value? Should the government do anything to compensate the losers or to tax..

Which ethical standard you want to find relate to your field : To begin your search, decide which ethical standards you want to find related to your field Infomation Technology: the ethical standards for professional practice, for research, or for scholarship.

Define in your own words ethical nursing practice : Define in your own words "ethical nursing practice." Describe the basis or framework you used for your definition. Explain the difference between legal and ethical nursing practice.

What will be the effect on expenditures on education : If the income elasticity of demand for education is 1, what will be the effect on expenditures on education of a small block grant of $100,000 if presently the community spends 5 percent of its total resources on education?

User Account

All Pages