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Insurance Tax Talk to an advisor: (816) 743-7700

IRS Raises Section 831(b) Premium Limit

October 26, 2022

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.

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