How the Self-Employed Write-Off Medical Expenses -- Core Documents Provides a Solution
For years the self-employed have been limited to only writing off medical expenses that are in excess of 7.5% of their adjusted gross income. This means the self-employed lose thousands of dollars in potential tax breaks available to regular employees. Core Documents has a solution, read on.
Bradenton, FL (PRWEB) August 29, 2007 -- Many self-employed individuals are finding themselves with thousands of dollars in medical, dental and vision expenses that can't be written off of their tax return.
Gene Ennis, CFC, the President of Core Documents, Inc., the nation's primary source for affordable Section 125 and HRA Plan Documents, reports he has a solution.
The solution can be found in Section 105 of the Internal Revenue Code, sometimes referred to as a Health Reimbursement Arrangement, or HRA Plan. These plans allow businesses to write-off out-of-pocket medical expenses and insurance premium.
Many CPAs and Accountants are not aware of a technique used for years by sole-proprietors, partnerships, LLCs, etc., that legitimately allow these business owners to write-off 100% of their medical expenses and insurance premiums.
"It's simple", says Gene Ennis, CFC, of Core Documents, "the self-employed individual needs to hire their spouse as an employee of the company. The company agrees to compensate the spouse in regular payroll, plus company sponsored benefits that include the reimbursement of medical expenses and insurance premium. The self-employed business owner becomes a dependent of their spouse/employee and has their benefits also reimbursed tax-free."
It's a back-door way of taking the tax deduction, but it's entirely legal and has been practiced for years by tens of thousands of business owners. With health insurance premium doubling in cost every four to five years, and out-of-pocket medical expenses totaling thousands of dollars it makes sense to establish one of these plans before it's actually needed.
Many business owners find themselves in the middle of a medical crisis with several thousand dollars in expenses before they start looking for a way to take these expenses as tax deductions. Unfortunately expenses incurred before the Section 105 HRA plan is established are not eligible for deduction.
Core Documents, Inc. establishes Section 105 HRA Plans for small businesses for only $99 plus $15 shipping and handling. This gives the employer everything needed to be compliant with Internal Revenue and Department of Labor requirements. See more information at www.CoreDocuments.com or www.Core105.com or call us toll free at 888-755-3373 and speak to a qualified consultant Certified in Flexible Compensation.
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