Tax Court Decision Underscores Captive Insurance Benefits

Tax Court Decision Underscores Captive Insurance Benefits

A company that forms a wholly owned captive insurance subsidiary to insure the risks of affiliated entities may enjoy numerous economic and business benefits. And a recent U.S. Tax Court decision demonstrates that such insurance companies are legitimate business arrangements entitled to special tax treatment if structured and managed properly, say Antoinette Ellison and Charles Hodges II of Kilpatrick Townsend & Stockton LLP.

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