ISSUE #30
HOW TO USE YOUR INCOME TAX RETURN TO
SPOTLIGHT FINANCIAL SECURITY NEEDS

Pablo Picasso said,

“There’s only one way to see things -
until someone shows you how to look at them
through different eyes.”

If you are like most Americans, you are just starting to recover from the trauma of preparing and filing your IRS Form 1040, the federal income tax return, and worse yet, paying your taxes.

The odds are good you have been asking yourself,

• What can I do so that next year I will NOT have to pay so much tax?

• How can I optimize my (deductible) retirement planning possibilities?

• Do I (does my family) have adequate financial security if I die or become disabled, or when I retire, or when the time comes for my children to go to college or professional school?

You'll find a wealth of tax reduction opportunities by using your 2006 tax return, not as history, but as a way to change your future - by looking at it through different eyes.

Here are just a few questions of the many questions you may want to ask yourself as you revisit your latest 1040:

• What is my combined federal and state tax bracket?

• What can I do to reduce income taxes?

• Should more of my assets be placed into tax exempt or tax deferred investments or in a deferred annuity?

• Is too much income coming from one source (Should I diversify)?

• Am I liability prone? Should some of my assets be retitled or repositioned to provide greater exemption or protection from creditors?

• Have I considered UTMA (Uniform Transfers to Minors Accounts), 2503(c) Trusts, FLPs (Family Limited Partnerships), LLCs, or other tools or techniques such as making annual gifts of income producing property that will help shift income (and income taxes) to lower bracket family members?

• Have I considered the incredible power of regular or Roth IRAs for my children or grandchildren who are working this summer and have earned income, and combining this with gifts of property to reduce my taxable estate?

There are, of course, many other questions and estate and financial security ideas that you can discover by going through your recently completed IRS 1040.

As always, please feel free to call to discuss these or any other areas of interest or concern. We are here for you.

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This publication has been prepared as an educational resource to help the reader identify areas of potential concern. The publisher is not engaged in rendering legal, accounting or other professional services. The information contained in this publication should not be acted upon without first obtaining the advice of a professional advisor. Material may not be used without permission. Leimberg and LeClair, Inc.

You may wish to access NEW information this month at: www.ashland.edu/estate and “click” on “Planned Giving” in the left hand column.

Our planned giving director, Paul Ditlevson, can be of tremendous service in helping you integrate your giving goals with your overall estate plan. He can also help you prepare to visit your attorney. You can reach Mr. Ditlevson by calling 419-289-5090 or by email to pditlevs@ashland.edu or regular mail at 401 College Avenue, Ashland, OH 44805.