Possible End of Bush Era Tax Cuts Leaves Businesses with Few Choices According to Attainium Capital Development Advisors
PR Web |
As the end of 2012 draws near, businesses and professional firms are scratching their heads wondering what they can do to mitigate the erosion of their wealth from potential taxation and future litigation. Fortunately, there is a solution for these companies.
Captives can provide insurance coverage for fortuitous risks that are typically self-insured. Examples include loss of revenue stemming from a breach of contract, uncollectible accounts receivable, weather-related events, a loss of customers, regulatory changes, subcontractor default and nearly any type of adverse impact to a business’ supply chain. They are most beneficial for companies that have a
Captives are guided by the US tax code. At their core, captives enable businesses to develop needed insurance reserves in a self-insured manner. Generally, a business’ premiums are tax deductible and may even grow tax-free, as long as they are properly priced and comport with the clearly defined regulations, revenue rulings and jurisprudence.
“Captives may be owned or controlled by clients, yet are treated separately from clients’ operating companies,” says
So if you are one of those companies scratching your head this season, consider captives as a solution to your problems.
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