"This is especially beneficial since regular captives being treated as a C-corporation are not taxed on capital gains." This is the key phrase from reading the description, not mentioned in the video. In other words, if "legitimate expenses" (claims are legitimate expenses, I suppose?) paid by an 831a regular captive are about the same as premium dollars taken in as income, income tax on an 831a would be close to zero?
"This is especially beneficial since regular captives being treated as a C-corporation are not taxed on capital gains."
This is the key phrase from reading the description, not mentioned in the video. In other words, if "legitimate expenses" (claims are legitimate expenses, I suppose?) paid by an 831a regular captive are about the same as premium dollars taken in as income, income tax on an 831a would be close to zero?
thanks wes... good stuff
Basically, insurance companies don't pay taxes. Clever business