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IRS Raises Section 831(b) Premium Limit

November 17, 2023

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

Ian uses the insurance industry expertise he has built through more than a decade of experience to help clients with various consulting needs, assurance support, and compliance projects. He helps clients find solutions to their challenges and pain points while creating sustainable outcomes. Clients appreciate... >>> READ MORE

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