Tax Changes for Insurers: Excluding Debt from Capital Assets.
This act modifies tax rules for insurance companies by excluding certain types of debt from the definition of capital assets. The goal is to simplify tax accounting for these companies, potentially contributing to the stability of the insurance market. For citizens, this means potentially more stable insurance services, though the direct impact on their daily finances is minimal.
Key points
Excludes certain debt (e.g., notes, bonds) held by specific insurance companies from being treated as capital assets for tax purposes.
Applies primarily to most insurance companies and face-amount certificate companies, with some exceptions for specific types of insurers.
Allows past capital losses from these assets to be treated as net operating loss carryovers, potentially offering tax relief to companies.
Expired
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