Tax Changes for Insurers: Extended Loss Carryovers.
This act modifies tax rules for certain insurance companies. Debts held by these companies will no longer be treated as capital assets, impacting their tax calculations. Additionally, these companies will be able to carry over capital losses for 10 years instead of 5, potentially improving their financial stability. While directly affecting companies, their stability can indirectly influence the insurance market and product offerings.
Key points
Debts held by specific insurance companies will no longer be considered capital assets, changing their tax treatment.
Insurance companies can now carry over capital losses for 10 years instead of the previous 5 years, allowing more time to recover losses.
These changes apply to debts acquired and losses incurred after December 31, 2025.
Introduced
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