On November 9, 2023, the IRS published Revenue Procedure 2023-34, which provided tax year 2024 adjustments to over 60 tax provisions that require annual inflation adjustments.
Insurance companies who have elected for the IRC § 831(b) small insurance company tax regime may write up to $2,800,000 in 2024 and qualify for the exclusion of underwriting income from taxable income. The 2024 $2.8 MM premium limit was increased by $150,000 from the 2023 $2.65MM inflation adjustment amount.
As 2023 comes to a close, owners and advisors should consider how the additional $150,000 in written premiums may impact their planning for tax year 2023.
If you have any questions regarding this tax update or other insurance matters, please contact a member of your MarksNelson Advisory team:
Tammy Siegrest
David Kaseff
Rachel Bartelsmeier
Ian Osler
