The passing of the Protecting Americans from Tax Hikes (PATH) Act could help shrewd healthcare professionals save more than $1 million in taxes, according to Jeff Blankinship, founder of Surgical Captive.
The PATH Act was signed into law in the US on 18 December 2015.
The legislation extended more than 50 expired provisions of the tax code, along with other tax compliance and administrative changes, including a modification of Section 831(b) of the Internal Revenue Code that raises the cap on premiums for captive insurance companies from $1.2 million to $2.2 million.
Blankinship believes that the PATH Act presents a ‘golden opportunity’ for healthcare professionals that create captive insurance companies in 2016.
He said: "Business owners with captive insurance companies can write-off up to $2.2 million in pre-tax revenue in 2016—that's about $1.3 million in potential tax savings. This isn't a loophole; it's black letter law of the IRS tax code. There is no better time for healthcare professionals to research the numerous benefits of establishing a captive insurance company.”
“Most captive management companies try to handle everything in-house, but when that happens, it can create conflicts of interest and improperly managed captive insurance companies. Through our unique business model, the economic advantages of a captive insurance programme will become readily apparent."
