Micro Captive Insurance

Learn about micro-captive insurance companies and how they work for estate planning. Discover tax benefits, ownership structures, and requirements for small ...

How much can I deduct with a micro-captive insurance company?

Micro-captive insurance companies can elect to be taxed only on investment income, not premium income, under IRC Section 831(b). This election is available to captives with gross receipts not exceeding $2.3 million annually. The captive must meet legitimate insurance requirements, including risk distribution and adequate capitalization. Many business owners use micro-captives as part of their estate planning strategy to transfer wealth while maintaining business protection.