How could anyone not see that this change to the tax code does not make sense? I can’t imagine not taking credit for reserves when filing taxes. If it were otherwise, companies would have no incentive to set adequate reserves at all; insolvencies are not good for any state’s economy…..bet they’ll get this fixed quickly!
Not sure I agree with you fellow Stat Guy. As I read this, it only applied to single parent captives, basically allowing a company to write off their loss reserves because the set up a captive. To me, that is basically a tax shelter to recoup money that would be paid via a self-insurance program. But I admit, my knowledge of the captive market, particularly single parent captives would fit into a very small sack.
How could anyone not see that this change to the tax code does not make sense? I can’t imagine not taking credit for reserves when filing taxes. If it were otherwise, companies would have no incentive to set adequate reserves at all; insolvencies are not good for any state’s economy…..bet they’ll get this fixed quickly!
Not sure I agree with you fellow Stat Guy. As I read this, it only applied to single parent captives, basically allowing a company to write off their loss reserves because the set up a captive. To me, that is basically a tax shelter to recoup money that would be paid via a self-insurance program. But I admit, my knowledge of the captive market, particularly single parent captives would fit into a very small sack.