Great video. I learned about this recently while at an independent auto dealers conference. It’s a growing trend now for owners of independent auto dealerships to start their own reinsurance companies using the 831(b) tax code. Using these reinsurance companies, a dealership can sell its own F & I products instead of selling a third party company’s F & I products.
Good video! Regarding prepaying premiums (at 31min:50sec) IRC code does not allow deduction on prepaid premiums. Any prepaid expense is considered an asset, not an ordinary expense. The expense needs to be used during the accounting year in order to be fully deducted.
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