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The last great completely legal tax shelter (other than qualified retirement plans) in the Internal Revenue Code involves the use of insurance and annuities. Ever subject to the clout of the insurance lobby, Congress has left untouched most of the rules allowing deferral of income and capital gains within certain insurance and annuity contracts. Deferral may occur for current yield income from investments in securities, real or personal property, or capital gains from the sale of property or a business. Care must be taken to select the optimal vehicle suited to the client's present and future business and personal situation and also which reflects real economic substance under the tax code and current regulations.
Take Note: "The hardest thing in the world to understand is the Income Tax." - Albert Einstein
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