On October 22, 2024, the IRS published Revenue Procedure 2024-40, which provided tax year 2025 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 $2,850,000 in 2025 and qualify for the exclusion of underwriting income from taxable income. The 2025 $2.85 MM premium limit was increased by $50,000 from the 2024 $2.8MM inflation adjustment amount.
As 2024 comes to a close, owners and advisors should consider how the additional $50,000 in written premiums may impact their planning for tax year 2025.
If you have any questions regarding this tax update or other insurance matters, please contact a member of your MarksNelson Advisory team:
