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Captive Insurance Arrangement Not Insurance; Premiums Not Deductible (Avrahami, TC)

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Payments made by married taxpayers’ companies to a captive insurance company did not qualify as insurance premiums under Code Sec. 162. The taxpayers, through their S-corporation, owned three successful jewelry stores. In addition, they owned several real-estate companies. In order to protect their assets, the taxpayers established a foreign captive insurance company as an estate […]

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