Tax Court OKs Deducting Payments To RAC Insurer
In a split decision, the Tax Court found that policies issued by RAC's captive insurer, Legacy Insurance Co. Ltd., is a genuine insurance business that shifted risk between the company's numerous retail units. That determination is what allows RAC's subsidiaries to write off payments to Legacy.
The majority rejected the IRS' claim that Legacy is a sham entity created primarily as a...
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