Tax break for health care expenses

With the 2006 tax season coming to an end and Christmas around the corner, many people who are self employed are looking for legal ways to save taxes by year-end. A McGill "Private Health Services Plan" called a PHSP will save the self employed individual thousands of dollars in taxes.

[ClickPress, Thu Nov 30 2006] Independent contractors and realtors and their accountants are pretty alert to using every available business expense to reduce the tax burden on self-employed contractors’ income. Home office, automobile and cell phone are obvious examples. However, surprisingly few are aware of recent innovations in Private Health Services Plans, and the tax savings potential of these flexible “self-directed” plans. In a nutshell, all of those family health care expenses – from glasses to physiotherapy to orthodontics – can be processed through a PHSP into a 100% deductible business expense. So if family health costs and insurance premiums run to $4,500.00 per year, a successful independent contractor/realtor can easily reduce her tax bill by over $2,000.00 by year-end.

What is a PHSP?

A PHSP is just about any insurance plan that covers medical, hospital and dental expenses. So all health insurance policies such as Manulife FlexCare or Manulife Followme or a Blue Cross health policy definitely qualifies.

In addition, there are several innovative providers tailoring plans that deliver flexibility and value to clients, while maximizing tax savings. This gives the client the total ability to control how much is contributed and what expenses it gets applied to, and makes sure that every dollar drives lower taxes. No caps on particular expenses; no limited percentages on what the plan will pay. The result is a much better tax break since all applicable expenses are included, and the tax reduction is at the taxpayers’ highest marginal rate.

McGill Financial, a Toronto-based firm has a strong focus on independent self-employed contractors, especially in the real estate industry, which it has served for over 20 years.

McGill Financial
1 Heath Street West, Suite 301
Toronto, ON
M4V 1T2
Office: 416 484 9921
Fax: 416 981 8837
Contacts:
Adam Smollan: adam@mcgillfinancial.com
Diana Dyer: ddyer@mcgillfinancial.com
Website: www.mcgillfinancial.com
Email: phsp@mcgillfinancial.com
For additional information about “Private Health Services Plans” and how to use a PHSP to Tax Shelter insurance premiums and health care expenses effectively for 2006 taxes, email or telephone our office and ask for any one of our account executives.

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