How to shear the cost of your medical insurance.
Here's some good news for budget-conscious entrepreneurs:
Last year, Congress voted to accelerate the timeline for business
owners to fully deduct their medical insurance by 2003.
But if that seems like too long to wait, you may already be able
to deduct 100 percent of your medical insurance, says Bob Sharp, a
CPA with Sharp, Thunstrom and Batson, an accounting firm in La
Mesa, California. If your spouse works for your company, then you
can offer group health insurance, declare yourself a dependent of
your spouse and legally deduct 100 percent of your medical
insurance expense.
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"[This strategy] will work to an advantage before the
percentage kicks in to 100 percent," Sharp says. "There
will be a crossover point if you take into consideration the cost
of payroll taxes and workers' compensation insurance for the
spouse."
Be sure to check with your accountant to see if this solution
applies to your situation.
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