Asset/Income Protection

Tax Reduction


Retirement Planning

Estate Planning

3023 East Copper Point Dr. Suite 106 Meridian, ID 83642
Office: (208) 846-7230


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Tax reduction results from behavior, investment and spending. At Cornerstone we work with you and your tax advisor to wring out possible tax saving strategies from the various components of your financial plan. Integration of tax planning into almost every financial planning decision can contribute to a lower overall tax burden.

Tax Deductions
Tax deductions may be available for health insurance premiums, contributions to health savings accounts, qualified retirement plan (401k, SIMPLE, SEP, KEOGH) and IRA contributions, mortgage interest paid, business or education expenses, charitable contributions and many other items. Even long-term care insurance premiums may be tax-deductible.

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Tax Credits
Tax credits are available for certain “green” expenses, low-income, and qualified real property, among other items. There is a difference between a tax deduction and a tax credit: a tax deduction allows the expense of the item to be deducted from your income while a tax credit is a direct reduction of tax dollars owed. Tax credits carry more “bang-for-the-buck”.

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Tax Deferral
Current tax is not generally due on the internal build up of value in tax-deferred annuity and life insurance cash values, unrealized gains in real property and stocks, business values, etc.

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Tax Exempt Income
Interest paid on most municipal bonds is exempt from federal income tax and often also from state income tax. Interest of US Government issued securities is generally exempt from state income tax.

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Captial Gains
Capital gains tax rates are currently lower than ordinary income tax rates, resulting in lower taxes on certain property that is sold after being held for longer than one year.

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Estate Tax Reduction
Estate tax reduction is likely to become a greater focus in the financial planning process since many more individuals will are affected beginning in 2011 with the reversion to former exclusion limits occurs, unless congress chooses to act to mitigate the situation. Proper titling of property and investments becomes much more important, as does the naming of beneficiaries to life insurance, qualified plans and IRAs. Transfer of property between family members and business partners must be considered when dealing with the potential for a total tax burden in excess of 50%!

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Investment Advisory Services offered through Investment Advisor Representatives of Cambridge Investment Research Advisors, a Registered Investment Adviser. Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC, to residents of: Alaska, Arizona, California, Colorado, Florida, Idaho, Illinois, Kansas, Maryland, Massachusetts, Montana, Nebraska, Nevada, New Mexico, Oregon, Utah, Washington, Wisconsin. Cambridge and Cornerstone Financial Planning, LLC. are not affiliated.