Tax Shareholder Susan E. Seabrook Weighs in on Impact of Refined Definition of “Insurance” with Tax Analysts

Tax Analysts reported on the Tax Court's recent decision which held that insurance policies providing businesses protection from an unexpected decrease in market value of particular assets constitute "insurance" for federal income tax purposes.

Buchanan Tax Shareholder Susan E. Seabrook weighed in, telling the publication that the opinion is "incredibly thorough" and "helps to provide a clear framework for taxpayers to structure their risk mitigation in a way that will be respected as insurance for federal tax purposes."

"We were looking to this decision to perhaps refine the definition of insurance, and it does that, but in doing so it sweeps in products beyond the traditional plain-vanilla lines of business to include more innovative insurance product structures," Seabrook told Tax Analysts. 

Read the full article: "Tax Court Explores Insurance Risk, Broadens Definition" (Tax Analysts, September 23, 2015) Subscription required.