Did you know you can purchase real estate using the accumulated cash value in your life insurance? Not all life insurance policies offer a cash value or surrender value so you’ll you want to consult with your life insurance company.
The premiums you pay for your life insurance is not tax deductible but when you use the cash value you can deduction the real estate depreciation, cost segregation bonus depreciation, interest payment and expenses. If your heirs are a beneficiary on the life insurance policy, the proceeds escape income and estate taxation. This allows deductions on the front end and nontaxable income on the back end.
This investment strategy allows you to receive benefits of additional income and tax deductions from your life insurance and allows your heirs to benefit by not paying any taxes on your real estate investment.
Contact us to find out how you can use your life insurance policy to purchase additional investment property, today.