On October 9, 2025, the IRS published Revenue Procedure 2025-32, which provided tax year 2026 adjustments to over 60 tax provisions.
Insurance companies who have made the small insurance company election under section 831(b) to be taxed only on investment income may write up to $2,900,000 in 2026 and qualify for the exclusion of underwriting income from taxable income. The 2026 premium limit was increased by $50,000 from the 2025 inflation adjustment amount of $2,850,000.
As 2025 comes to a close, owners and advisors should consider how the additional $50,000 in written premium may impact their planning for tax year 2026.
If you have any questions regarding this tax update or other insurance matters, please contact a member of your MarksNelson Advisory team:
