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Deduct 100% of medical expenses!!!

Discussion in 'Business Operations' started by MATTHEW, Jul 11, 2001.


    MATTHEW LawnSite Senior Member
    from NE OHIO
    Messages: 665

    I just got a new health insurance co. 'cause my other co. raised my premiums $150.00/mo. It is the National Self Employment group. (NASE) The hooked me up with a group called Association 105 who has a plan that gets all of your med expenses pu on the schedule C. Here's how it works. You hire your wife to do some work for you. Paperwork, phones, ect. Then you have her pay all medical expenses out of her account.Everything. Then you re-pay her at the end of every month all the $$$ she spent and place it in your "employee expenses" box. This is totally legal. The law has been on the books since the '50's. The reason our cpa's won't tell us is that they don't know(it is buried in a huge tax book) or they don't want to be held liable in the event of a govt. audit. That is where asso. 105 steps in. In the event of an audit, they are contacted reguarding this potion of your schedule c. They assume legal responsibility provided you have documentation of your activities. We went over the numbers and I will save $2,000 this year!
  2. williamslawn

    williamslawn LawnSite Member
    from SC
    Messages: 202

    Association 105 is based on tax law 105. You do not need them. To deduct 100% of med. ins. Just follow the tax law. Goto IRS.gov and do a search for med reinburstment. I had ins. with NASE but they went up 85.00 per month after the first year. After the first year Association 105 will bill you for there service. Also you are paying a membership fee to NASE each month. I think it is 20 or 25 per month. You will need to follow the guidelines set by IRS. I was almost disqualified because I did not pay my wife enough money. But you can count the Ins. premiums as pay. You need to talk to you accountant.

    MATTHEW LawnSite Senior Member
    from NE OHIO
    Messages: 665

    What do you mean, count your insurance premiums as pay? who's pay. Do you write off all med. expenses now without having ass. 105 (no pun ) handling it?

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