Finance, Investments, and Accounting
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. Learn 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. Learn 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
What Captive Owners Should Know About the 953(d) Tax Election
Bruce Wright of Eversheds Sutherland explains section 953(d) of the Internal Revenue Code, which allows non-US captive insurers to be taxed as domestic companies. He discusses the election process, potential termination, and the importance of compliance, advising protective returns if an audit threatens the 953(d) election. Read More
Why Cash Flow Is Key for Captive Insurers
Cash is king. This is especially true for captive insurers, since they typically have fewer margins for error. Captive board members should understand their captive's cash flow, so let's discuss some key areas for exploration and understanding. Read More