Mt. Kisco Tax & Monetary Services Group Inc

50 Main Street

      Mt. Kisco, NY 10549

   Tel: 914-244-4400

    Fax: 914-244-0088

Branch Office

Somers, NY

10589

  Tel: 914-276-7878

We Do

PAY CERTAIN EXPENSES DIRECTLY

If you would like to make annual gifts to a child in excess of $10,000, you may still be able so without negative gift tax consequences. Tuition payments made directly to an educational institution do not count toward the $ 10,000 annual limit.

However. this exception does not apply to amounts paid for room and board or books. Furthermore, if you pay the student instead of the school, none of the amount qualifies under this special rule, even if the money is used for tuition.

The same exclusion applies to payments made directly to providers of medical services-including medical insurance premiums. If the expense is reimbursed by insurance it does not qualify.

WITHDRAWALS FROM LIFE INSURANCE

Older life insurance policies required that you surrender a life insurance policy, or make a loan, which would require that you make a non-deductible interest payment.

However, the newer form of life insurance, universal variable life, may contain a withdrawal  privilege. This enables you to make a tax free withdrawal from the policy. The amount that is withdrawn will no longer earn interest, but you won't have to pay any tax. However, this advance is taken into consideration if the policy is surrendered.

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