Message Font: Serif | Sans-Serif
No. of Recommendations: 2
I read a New York Times article recently about this guy who opened his own tax-exempt insurance company and used it to avoid paying taxes on his gigantic investment profits. It is all supposedly legal.

Most information you'll ever see on amazing, legal, tax-exempt loopholes is completely wrong. Insurance companies pay taxes just like all other C-corporations. One possibility, and I've not seen the article, is that he could have started his own insurance company with a few million (minimum) that he would not have to pay tax on. However, that money is now at risk in an insurance company and he can't get to it, other than to shut down the company and pay tax on that money.

As someone who works in the insurance industry, I'd much rather pay the tax on a few million than start an insurance company.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.