The owner of more than a dozen San Antonio medical facilities can’t deduct millions in premiums to microcaptive insurance companies he controlled because they only used the trappings of insurance in order to help him avoid tax, the US Tax Court said Thursday.
Bernard and Kathy Swift petitioned the Tax Court for review after the IRS determined deficiencies and accuracy-related penalties against them for their deducting more than $1 million in premiums and legal fees on each of their joint federal income tax returns for 2012 through 2015.
The microcaptives themselves paid no tax on the premium income they received ...
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