In our current rising tax rate environment, CEOs and CFOs of middle-market companies are wise to consider all possible tax saving opportunities for their businesses and for the owners of the businesses. One opportunity that should be considered is the formation of a special form of captive insurance company. “Small insurance companies” qualify for powerful tax benefits if structured and administered correctly.
Captive insurance companies are experiencing a resurgence after recent adoption of new regulations and rulings that provide more certainty on key formation issues. While captives provide income tax and estate tax saving opportunities, they must be properly structured and administered to meet IRS standards for insurance. This webinar will provide a historical perspective on captives and discuss the different forms of captives. Our experts will discuss how to properly structure a captive that meets both legal and tax requirements.
At the conclusion of this session participants will:
- Understand the history of captive insurance companies
- Know about the different forms of captives
- Understand how tax rules (risk distribution and risk sharing) differ from legal rules
- Understand the tax benefits of IRC § 831(b) and the IRC § 953(d) election
- Understand the $1,200,000 premium cap and benefits of being a small insurance company
- Evaluate the advantages / disadvantages of domestic or foreign jurisdictions
Presenters | Margarete Chalker and Doug Youngren of the insurance practice and Jerry Jonckheere of the international tax team.