Using life insurance under new passive income rules

Life insurance should already be on the radar of business owners. One strategy to keep passive income under the threshold is for the business to purchase or use an existing exempt, permanent life insurance policy on the business owner. Tax-exempt insurance does not produce annual investment income, which means your adjusted aggregate investment income will be lower, and that means you could preserve more [of the] small business deduction.

Leave a Reply

Your email address will not be published. Required fields are marked *