January 2016

Over the last few weeks, we have addressed the “Tax Extenders” bill titled H.R. 34.  As noted, this new legislation included Section 262 titled, “MODIFICATIONS TO ALTERNATIVE TAX FOR CERTAIN SMALL INSURANCE COMPANIES.”  These modifications impact small captive insurance companies (CICs) that make an 831(b) tax election (CLICK HERE to read about H.R. 34 and Section 262).

We noted that the legislation’s “diversification requirements” have created quite a stir

As we noted last week, Congress created quite a stir in the captive insurance industry in mid-December of 2015 when it passed and President Obama signed a so-called “Tax Extenders” bill titled H.R. 34.  This new legislation included Section 262 titled, “MODIFICATIONS TO ALTERNATIVE TAX FOR CERTAIN SMALL INSURANCE COMPANIES.”  These modifications impact small captive insurance companies (CICs) that make an 831(b) tax election.

The legislation’s “diversification requirements” have created quite a stir with some industry pundits and domicile regulators suggesting many existing captives will have to restructure or close.  We believe such allegations are

In a flurry of legislative activity in mid-December of 2015, Congress passed and President Obama signed a so-called “Tax Extenders” bill titled H.R. 34.  This created a stir in the captive insurance industry both before and after passage, as H.R. 34 included Section 262 titled, “MODIFICATIONS TO ALTERNATIVE TAX FOR CERTAIN SMALL INSURANCE COMPANIES.”  These modifications

By Sean King, JD, CPA, MAcc

Principal, CIC Services, LLC

When it comes to estate tax planning, there’s generally only one key objective–transfer assets from senior generation’s name to junior generation’s names without triggering gift taxes, estate taxes, or generation skipping transfer taxes.

Most popular techniques that facilitate these inter-generational wealth transfers-