Finance, Investments, and Accounting
Insights into the Avrahami and Feedback Decision
The US Tax Court decided two cases, Avrahami v. Commissioner and Feedback v. Commissioner, and the formation and operation of a captive insurer. Learn More
Collateral for Captive Insurers
Martin Ellis, manager of Comerica Bank's Captive Insurance Group, says captive insurers mainly use letters of credit and reinsurance trusts for collateral. Learn More
"Insurance Risk" as a Tax-Deductibility Requirement
As touched on in the video "Tax-Deductibility of Captive Insurance Premiums," P. Bruce Wright of Eversheds Sutherland (US) LLP expands on what qualifies as a true insurance risk for regulatory and tax-deduction purposes. One of the most important factors is determining if there is an insurable interest. Read More
Tax-Deductibility of Captive Insurance Premiums
P. Bruce Wright of Eversheds Sutherland (US) LLP explains what is required of an insurance contract in order for a captive to deduct its insurance premiums for tax purposes. Read More
Why Letters of Credit Are the Most Popular Option for Captive Insurers
Martin Ellis, manager of Comerica Bank's Captive Insurance Group, explains why letters of credit (LOCs) are the most popular collateral option for captive insurers. Read More
Custody for Captive Insurers
Martin Ellis of Comerica's Captive Insurance Group says custody for captive insurers is the safekeeping of a captive's financial assets in an account. Read More
What Is FATCA and How Do Captives Handle It?
Foreign Account Tax Compliance Act (FATCA) mandates captives, especially non-US ones, to follow US reporting rules on international payments and transactions. Captives must identify and report US-related payments, with specific requirements based on their classification as financial or nonfinancial entities. Compliance aims to ensure transparency regarding foreign assets owned by US persons. Read More