Key Takeaways Insurance companies are fully exempt from California’s new SB 261 climate risk reporting mandate. California’s climate disclosure law excludes insurers because they already undergo extensive climate-related oversight through state insurance departments and the NAIC. Existing NAIC and Department of Insurance reporting frameworks…
In Brief: Donor-Advised Funds let you donate appreciated investments, avoid capital gains tax, and still get a full deduction. You can choose later which charities receive the funds. Qualified Charitable Distributions (QCDs) allow people 70½ and older to give directly from an IRA and reduce taxable income. This can count toward Required Minimum Distri…
By Rob Flowers
In Brief: Foreign-owned businesses and U.S. investors in foreign entities face additional and often complex U.S. tax and financial reporting requirements. Missing required filings such as FBAR, Form 5471, or Form 5472 can result in significant IRS penalties and in some cases criminal exposure. FBAR reporting is required when foreign bank accounts exc…
For eligible businesses, the federal Research & Development (R&D) tax credit can provide an immediate and significant tax savings. However, the process for claiming the credit is different from other federal incentives. It requires the taxpayer to pass a four-part test which determines whether reported research activities and expenses sati…
Many California businesses must participate in CalSavers if they do not offer a retirement plan, but this program provides no tax benefits. Establishing an IRS qualified retirement plan provides federal tax credits that offset startup and contribution costs. Three key credits include the Retirement Plans Start Up Costs Credit, Employer Contribution…
In Brief The combined ratio is a key performance metric in the insurance industry, especially for property and casualty (P&C) insurers. It measures underwriting profitability by adding two components: Loss and loss adjustment expense (LAE) ratio Underwriting expense ratio A combined ratio below 100% indicates an underwriting profit, while a rat…
By Ben Siverly
Investment Limits TIC Chapter 425 contains various investment limits based on the type of investment. All of the limits within Chapter 425 apply to the cost basis of the investment at the time of acquisition. Some of the key investment limits for bonds and common stock from that chapter are detailed below: U.S. Government Bonds – limited to 20% of capital and…
In Brief Construction companies must weigh buying versus leasing equipment based on cash flow, tax planning, and utilization needs. Buying creates a long-term asset, supports bonding capacity, and can provide tax benefits through depreciation. Leasing preserves cash flow, reduces upfront costs, and offers access to newer technology and service agr…
In Brief The One Big Beautiful Bill Act (OB3) reshapes tax policy and federal spending with ripple effects across health, life, and property & casualty insurance. Health insurers face higher churn, compliance burdens, and risk concentration as Medicaid and ACA subsidies are rolled back. Life insurers will see reduced demand for estate-tax-driven…
In Brief Choosing the right entity type is not a one-size-fits-all decision; it depends on ownership, risk, revenue, and long-term goals. Sole proprietorships are the simplest starting point but offer no liability protection and can trigger IRS scrutiny once sales exceed $100,000. LLCs provide liability protection, tax flexibility, and credibility…
In Brief The premium-to-surplus ratio is an early warning signal for insurers and regulators. Staying under the 3-to-1 benchmark helps protect solvency, especially when venturing into new markets or lines of business. Even profitable growth plans can strain capacity if surplus is not strong enough to absorb underwriting and investment risks. Using re…
By Lindy Zhou
In Brief: Most foreign-owned U.S. subsidiaries are not required to have a statutory audit. When it comes to assurance services, there are several levels of engagement that provide different degrees of scrutiny and assurance. These include audits, reviews, and compilations. Financing needs, parent company requirements, and long-term growth plans wi…
