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For a sale to be considered an installment sale, it must be a sale at least one payment after the tax year of the sale. Each installment payment you will receive will consist of the following: non taxable recovery of the investment basis, taxable gain and ordinary income. Allowing you to choose when capital gain taxes are paid.

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All annuities have three primary advantages: Tax Deferral, Avoidance of Probate, and a Guaranteed Income (optional) for a fixed period of time, or income for life. Annuities and CDs (bank certificates of deposit) are similar in that they are safe, secure investments with guaranteed rate of returns based on interest rates, both issued by large financial institutions, CDs issued by banks, Annuities offered by insurance companies, but they both possess inherent differences as well.

The big differences are that while Annuities offer everything CDs offer, they carry several advantages. Generally Higher returns, Tax-Deferral and Liquidity.

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Estate Planning is the process by which an individual or family arranges the transfer of assets in anticipation of death. An estate plan aims to preserve the maximum amount of wealth possible for the intended beneficiaries and flexibility for the individual prior to death. A major concern for drafters of estate plans is federal and state tax law.

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The need for long term care arises when an individual requires from someone else, assistance with medical care, daily activities, comfort, supervision or advice. Most long term care is provided by family members. The need for long-term care help might be due to a terminal condition, disability, illness, injury or the infirmity of old age. The need for long-term care may only last for a few weeks or months or it may go on for years. It all depends on the underlying reasons for needing care. Includes medical and non-medical care to people who have a chronic illness or disability.

Long-term care helps meet health or personal needs. Most long-term care is to assist people with support services such as activities of daily living like dressing, bathing, and using the bathroom. Long-term care can be provided at home, in the community, in assisted living or in nursing homes. It is important to remember that you may need long-term care at any age.

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A structured sale, so named by the company that created the concept, Allstate Life Insurance Co. is a somewhat derivative product that combines the best of a structured settlement periodic payment annuity and the tax rules governing Installment sales. As you might know, installments have a long and established tax history and are used in many transactions when the seller of real property, typically a business or some real estate, wishes to defer their tax hit over a period of years, or "structure" the income. What this new "structured sale" annuity allows is to create an installment sale, and then fully fund the future payments, with interest, to be paid on a schedule designed by the seller to best meet their future plans.

Structured Sale offers all the advantages of an Installment Sale without the security risk that makes Installment Sales unattractive for most people. Internal Revenue Code Sec. 453 and various Revenue Rulings permit sellers to defer taxes on all or any portion of their sales proceeds. The terms of the deferral can be extremely flexible and can be designed to meet a variety of future needs.

Allstate Structured Sales

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Internal Revenue Code Section 1031 states that no gain or loss is recognized where property held for investment or productive use in a trade or business is exchanged solely for property of like-kind which is to be held for investment or productive use in a trade of business. A 1031 exchange is an ideal way to suspend the taxes that are immediately due after the sale of an appreciated asset.

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Traditional IRA — Up to the year you turn 70½ as long as you have earned income. Earnings grow tax deferred. Potentially tax deductible contributions.

Roth IRA — Any Age as long as you have earned income .Earnings grow tax deferred; distributions are federally tax free is age 59 ½ or older and account held for 5 years. Rollover means to move money from a qualified retirement plan such as a 401(k) into an IRA.

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The benefits are financial assistance for elderly Veterans and their widow. Benefits to pay for assisted living and home health care. To qualify a veteran must have 90 days or more of active duty under other than dishonorable conditions, one day of which was during war time. You are permanently and totally disabled, or are age 65 or older, AND your countable family income is below a yearly limit set by law.

VA Brochure

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A process where a lender pays an insurance premium to an insurer on behalf of an insured. The policyholder repays the lender for the amount of the loan (principal) plus interest and any assessable fees and charges. Process is initiated at the agent/broker's office when the coverage is originally applied for and the funding payment is made. This can be a zero to minimal investment way of creating a cash asset for heirs or charity.

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Planning is the key to successfully and legally reducing your tax liability. In order to make an effective tax plan you must have an accurate picture of your tax situation.

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A Special Needs Trust is a special kind of trust which holds title to property for the benefit of a child or adult who has a disability. The Special Needs Trust can be used to provide for the needs of a disabled person to supplement benefits received from various governmental assistance programs including SSI, Medicaid or Medi-Cal. A trust can hold cash, personal property, or real property, or can be the beneficiary of life insurance proceeds.

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Retirement income is commonly likened to a three-legged stool because it comes from three equally important sources: Social Security benefits, personal savings and investments, and employer-sponsored retirement plans. Once that's said, the subject becomes increasingly complex, due in large part to the Internal Revenue Code (IRC), our federal tax laws. The government gives favorable tax treatment to certain kinds of savings in order to encourage them, such as individual retirement accounts.

The IRC dictates when and how much money individuals can put into such plans and when and how much they can or must withdraw, in order to receive tax deductions, deferral, or exemption. Many types of retirement plans are named after the sections of the IRC that regulate them, such as 401(k), 403(b), and 457. The name of the plan refers to its tax status, and usually (but not always) is independent of the vehicle (e.g., a mutual fund, an annuity) in which the money is invested. The phrase employer-sponsored retirement plan is sometimes used instead of the word pension. This includes plans like the 401(k). In some plans, employees make all the contributions; in others, employers also contribute. Personal savings and investments can be in any form—IRAs, CDs, savings accounts, annuities, or others—regardless of their tax status.

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An arrangement that meets the following requirements: A structured settlement must be established by: A suit or agreement for periodic payment of damages excludable from gross income under Internal Revenue Code Section 104(a)(2); or An agreement for the periodic payment of compensation under any workers’ compensation law excludable under Internal Revenue Code Section 104(a)(1); and The periodic payments must be of the character described in subparagraphs (A) and (B) of Internal Revenue Code Section 130(c)(2) and must be payable by a person who: Is a party to the suit or agreement or to a workers compensation claims; or By a person who has assumed the liability for such periodic payments under a Qualified Assignment in accordance with Internal Revenue Code Section 130.

Life Settlement Brochure