THE TAX DEDUCTION DILEMMA FOR BUSINESS OWNERS – CASH FLOW KILLERS

The main issue for  every business owner is that  advisors try to convince them to spend capital on tax deductible expense solutions, but most of these require rerouting critical capital away from the business to less productive investment alternatives.  These “tax deferrals” are cash flow killers for business owners, including funding qualified retirement plans.  It’s simple math: it takes $1 to save 50 cents in taxes, but then you’re out the $1.00, in other words you’re down 50 cents in cash flow to your business to save the 50 cents.

CREATING A TRUST PROFIT-CENTER THROUGH BUSINESS TAX EXPENSE FINANCING

We have the best of all worlds.  We can create large impactful expense deductions by insuring against the risk exposures of the inherent business, real estate or private equity investments inside the PRP.   But unlike all other expenses where the client has to write the check – we have a capital bank resource that will  finance the premiums over a strategic timeline.

Our PRP DEFENDER™ strategy pools our provider resources into a capital management program by leveraging low-cost funding with tax-deductible risk reserves coverage, that together results in actual cash flow increase and capital reinvestment opportunities.

But please note that the program success is determined by many economic variables, including the business revenues, net profits, tax rates, the funding of the PRP Trust, and the long-term returns generated by PRP assets.  Not every client can qualify for risk coverages nor financing if the economic metrics are not actuarially measured and underwritten.

Contact us to get a customized Cash Flow & Capital Management Analysis proposal at trustadmin@trust-cfo.com or call 800-730-3020 to ask for a consult.