On October 18, 2022, the IRS published Revenue Procedure 2022-38, which provided tax year 2023 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 $2,650,000 in 2023 and qualify for the exclusion of underwriting income from taxable income. The 2023 $2.65 MM premium limit was increased by $200,000 from the 2022 $2.45MM inflation adjusted amount.
As 2022 comes to a close, owners and advisors should consider how the additional $200,000 in written premium may impact their planning for tax year 2023.
If you have any questions regarding this tax update or other insurance matters, please contact your MarksNelson advisor.
