Discussion Archives:Captive Insurance Company?

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Basic Tax Questions --> Captive Insurance Company?


Discussion Forum Index --> Tax Questions --> Captive Insurance Company?

Yt1300inHtown (talk|edits) said:

18 November 2008
Hi gang.

Does any one know anything about this? I can figure out easily enough WHAT it is. Any thoughts on the issues that may pop up or questions I should be asking?

Client says "Any thought on this would be helpful". I don't have any particular thought.

Has anyone dealt with this before?

TIA, YT

Kevinh5 (talk|edits) said:

18 November 2008
yup, we know what it is, but we don't know what you are without a profile. Your answer gets ours.

Yt1300inHtown (talk|edits) said:

18 November 2008
I forgot how weird you people are about that.

Somehow my info fell off and I had to re-do it which I have done.

Back to my question please. It looks like there is a lot of data on the internets pertaining to this but mostly from companies selling this set up.

Kevinh5 (talk|edits) said:

18 November 2008
thanks, Yt.

(edited for incorrect content0.

Yt1300inHtown (talk|edits) said:

18 November 2008
Client is a doctor who owns multiple clinics around the city.

He is they type who wants to chase very tax savings "startegy" someone tells him about which is why I am wondering what this deal is all about.

Kevinh5 (talk|edits) said:

18 November 2008
who is contacting the doctor and what are they proposing?

Yt1300inHtown (talk|edits) said:

18 November 2008
That doesn't quite sound like what I am taliking about Kev.

I found an article on a website I found selling this structure:

Captive Insurance Company Tax Benefits, Savings and Incentives

It sounds too good to be true you know?

Kevinh5 (talk|edits) said:

18 November 2008
yes, I wonder why people believe everything they read on the internet.

Yt1300inHtown (talk|edits) said:

18 November 2008
Kev said: who is contacting the doctor and what are they proposing?

I'll find out tomorrow.

Yt1300inHtown (talk|edits) said:

18 November 2008
Ok, well, I'll keep on reading the webs and see what was proposed to client tomorrow.

Thanks Kev

Kevinh5 (talk|edits) said:

18 November 2008
well, it looks like there are other definitions of Captive Insurance than the one I brought up:

one site

another

a 3rd

Notax (talk|edits) said:

18 November 2008
A variation of this strategy was temporarily a listed transaction (see PORC). It has since been delisted. In general, you will have a hard time for a single doctor to shift enough risk to constitute insurance.

Yt1300inHtown (talk|edits) said:

18 November 2008
Noratx, I think you're right. Per BNA citing FSA 200029010, the IRS will stop challenging these things unless they are "a sham".

I guess I'll see how they plan to prove it is not a sham.

Kevinh5 (talk|edits) said:

20 November 2008
I just read Dennis' link here: Discussion:Captive Insurance

Yt1300inHtown (talk|edits) said:

20 November 2008
Thanks Kev. Someone sent me the same link this morning via email. Good call.

9/17/13: A post has been removed in accordance with TaxAlmanac policies.

Here is one of the several policies:

Please do not include your personal or business information within a TaxAlmanac article or discussion post. When you create your account and log in to TaxAlmanac, a personal page is created for you for this purpose. To access your personal page, log in, then click your user name located at the top of the page. You can add your contact information and anything else you want to your personal page. Another user can find your personal page by viewing the history of an article you contributed or edited, seeing your user name in a discussion page/post, or seeing your updates on the Recent Changes page. In all of these places, a user can click on user names shown and proceed directly to that user's personal page.

Please don't try to use TaxAlmanac to promote your product or business. Please don't insert external links to your commercial website unless a neutral party would judge that the link truly belongs in the article/discussion post.

(Note, this doesn't prohibit you from "signing" a discussion post with your name/location and/or a link to your TaxAlmanac user page if you wish to do so. However, that signature is unnecessary since all discussion posts are preceded by the user ID, which provides an immediate link to the user page, and as a result signing posts is rare on the TaxAlmanac forums.)

Copyrights

You are contributing to a free, publicly-usable database of information and submitting work which infringes copyrights threatens our objective to build a truly free online resource. Never submit copyrighted material without permission from the copyright owner. See our complaint and takedown procedures if you are a copyright owner and feel your rights are being infringed. Our contribution terms outline some details regarding permissible content.

One added note: the author may or may not be the sole copyright owner for an article published in a newspaper or journal. Without written confirmation from the newspaper or journal, it cannot be assumed that the author has the right to republish content here.

Personal tools