Insurance Industry, Tax Deductions, IRS

Tax Court Upholds IRS Decision That Premiums Paid to Microcaptive Insurance Companies Did Not Qualify for Tax Deductions

Carlton Fields on 4/23/2024

The U.S. Tax Court recently upheld a determination by the IRS that premium payments to certain microcaptives could not be deducted for tax purposes because the premium payments were not actually for “insurance.”...more

IRS Issues Long-Term Care Premium Deductibility Limits for 2019

Chambliss, Bahner & Stophel, P.C. on 12/17/2018

The Internal Revenue Service (IRS) is increasing the amount taxpayers can deduct from their 2019 income as a result of buying long-term care insurance. Premiums for "qualified" long-term care insurance policies (see...more

Tax Court Disallows Deductions For Payments To Captive Insurance Company

Carlton Fields on 11/7/2017

A husband and wife who paid $1.54 million in premiums to their captive insurance company and $720,000 in premiums to another insurer over two years, almost all of which ended up back in their bank accounts, have had their tax...more

Takeaways from the Tax Court's First Micro-Captive Insurance Ruling

Holland & Knight LLP on 10/9/2017

• The U.S. Tax Court recently ruled in Avrahami v. Commissioner, the first litigated Tax Court case involving an 831(b) captive insurance company. • The Tax Court held that two of the key factors that define "insurance"...more

Client Alert: Avrahami v. Commissioner: An Important Ruling on Microcaptive Structures

Shumaker, Loop & Kendrick, LLP on 9/1/2017

While many were captivated by the solar eclipse on August 21st, the US Tax Court, in Avrahami v. Commissioner, shed judicial light on the tax treatment of what is known as a “microcaptive” insurance company. More...more

House Republican Health Care Bill: Good News for Health Insurance Executives

Akerman LLP - Health Law Rx on 3/9/2017

An Affordable Care Act (ACA) provision that is often-overlooked by the media, but has impacted the ability of insurers and their non-insurance related entities, in their role as employers, to take tax deductions for certain...more

New York State Denies Taxpayer's Insurance (Deduction) Claim - Tax Update Volume 2016, Issue 1

Troutman Pepper on 6/7/2016

Captive insurance arrangements, in New York and in certain other states, are often dependent on the federal treatment of the relationship as insurance for federal income tax purposes. A recent New York state...more

Stretched for Resources, the IRS Sets Its Sights on Small Captive Insurers

Carlton Fields on 6/23/2015

A "captive" insurance company is an insurer formed for the limited purpose of insuring the risks of its non-insurer owner or owners. A captive can be an effective risk-management tool, especially for costly or unconventional...more

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