Discussion:Captive insurance entities

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Discussion Forum Index --> Tax Questions --> Captive insurance entities

Jamshed (talk|edits) said:

24 November 2005
Consideration is to set up a foreign entity for purposes of self insurance against future contingent claims related to property development. Has any one had experience in the set up of one of these entities? what is the best juridiction, and what are the US tax ramifications.

Jsanchez (talk|edits) said:

2 December 2005
Take a look at this code section. It may be easier for to set up your insurance company this way. If not you can alway go to www.captive.com and take a look at their web site very informative.

501(C)(15)(A) Insurance companies or associations other than life (including interinsurers and reciprocal underwriters) if the net written premiums (or, if greater, direct written premiums) for the taxable year do not exceed $350,000. (B) For purposes of subparagraph (A), in determining whether any company or association is described in subparagraph (A), such company or association shall be treated as receiving during the taxable year amounts described in subparagraph (A) which are received during such year by all other companies or associations which are members of the same controlled group as the insurance company or association for which the determination is being made.

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