Defining Qualified Business Income In Life Settlement Industry
By Brian Casey, Thomas Sherman and Jaremi Chilton (September 28, 2018, 4:29 PM EDT) -- Among the many other income tax relief provisions provided by the Tax Cuts and Jobs Act,[1] one of the key ones is new Internal Revenue Code Section 199A's 20 percent deduction from taxable (not gross) income for "qualified business income" derived from the direct performance of certain types of professional services or that flow through from fiscally transparent entities. On Aug. 16, 2018, the Internal Revenue Service published its proposed regulations for implementing this code section, which includes good news for insurance agents and brokers. This article examines whether that good news will carry over to participants in the life settlement industry, the secondary life insurance policy investment and trading business. Read our prior three TCJA's impact on the life settlement industry articles here, here and here....
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