LLLLLLLLL

 

 

HOME

 

 

TAX CONSIDERATIONS

 

 

The question of tax deductibility of insurance premiums paid to captives, as well as the tax treatment of loss reserves, loss payments, and investment income, is quite complicated and extremely important to business owners. This requires business owners and Captive Managers to consult with individuals possessing specialized tax expertise. Most tax experts would caution that a company considering a captive arrangement must have a specific business reason beyond tax considerations for forming the entity in order to avoid IRS scrutiny. In addition, a captive may risk tax jeopardy if it is under-capitalized, operates in an under-regulated jurisdiction, or was obviously set up for tax reasons.

 

 

 

F. Darrell Lindsey

State Approved Captive/RRG Manager

U.S. State Licensed Agent/Broker

 

 

 

 

 

 

BACK USE ARROW

TO PRINT USE PRINT PREVIEW