Arcane Case May Redefine Business Risk - McDermott Will & Emery

Arcane Case May Redefine Business Risk

Overview


Thomas Jones called a current dispute involving whether residual value insurance involves investment or business risk and not insurance risk “probably the most significant single issue up for decision” before the U.S. Tax Court. The case is the first in which a court has tried to distinguish between insurance risk and business risk for tax purposes, Mr. Jones said, adding that an unfavorable ruling might create uncertainty about other types of insurance. Read the full article