Monthly payment and taxes

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Q. For tax purposes, is it better to take a monthly payment which will result in depletion in less than 10 years, or make it go longer than 10 years? Say, an amount of $250,000.

A. It’s impossible to say, for sure. The best you can do is make some assumptions about the variables involved and run pro-forma tax returns for the next 10+ years. It might be a good idea to just take what you’ll need.

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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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