Article

MLMIC Payout Tax Treatment?

Provided by:  Jennifer Kirschenbaum, Esq.

October 18, 2018

 

Thank you to Bryan Koshers, CPA for sending over!  I've gotten several inquiries on how MLMIC Payouts will be treated tax-wise (outside my purview).  For our readers, always make sure you are utilizing the services of a competent Healthcare accountant!!!  #AllabouttheTeam... 


 

Hi Jenn-

As you know, Berkshire Hathaway has starting sending out their much anticipated “MLMIC payouts”.   In 2017, MLMIC / Berkshire Hathaway decided to convert from a mutual insurance company to a stock insurance company, this process is known as demutualization.  The result of this demutualization is, in essence, a sale of your ownership in the insurance company for the payment amount received.  This payment would be treated for tax purposes as a long term capital gain without a tax basis and thus the entire payment amount would be subject to tax.

I hope this helps you and those in the dark.  That said, there are some planning opportunities here and your client’s should discuss this transaction with their healthcare CPA for further advice.

Bryan Koshers, CPA
Koshers & Company, LLC
1094 Merrick Avenue
Merrick, NY 11566
(516) 481-1515 voice
(516) 481-1784 fax
Bryan@KoshersCo.com
KoshersCo.com

Pursuant to IRS Circular 230: If any tax advice is contained in this communication or attachments, it is not intended or written to be used, and cannot be used, for the purpose of avoiding tax or related penalties under federal, state , or local law.


*************************************************************
 

Every NYS Employer (no matter the size) is required to have Sexual Harassment Policies and Train NOW. 
Order Policies and Training here:   

https://www.kirschenbaumesq.com/page/practice-compliance


Learn about the law and what you need by watching our Free webinars: 
Webinar 1: CLICK HERE NYS Free Sexual Harassment Policies: Employer Beware (overview in 6 minutes) 
AND
Webinar 2: CLICK HERE NY Sexual Harassment Training Requirements: Protecting Your Business from your Employees

Looking for the KK Healthcare Exchange?  Click Here. 

MISSED OUR RECENT WEBINARS?  CLICK HERE ANYTIME!
Looking for HIPAA and compliance forms?  
Click here to visit our website.
Have a question or comment for Jennifer?
Contact Jennifer at Jennifer@Kirschenbaumesq.com or  at (516) 747-6700 x. 302.
Interested in having Jennifer speak at an event or
at a residency/fellowship program?
Contact Jennifer directly at (516) 747-6700 x. 302 or at Jennifer@Kirschenbaumesq.com
Click here to learn about
K&K's Prepaid Legal Audit/Investigation Defense Now!
MLMIC Payout Tax Treatment? - October 18, 2018 - Jennifer Kirschenbaum

Article

MLMIC Payout Tax Treatment?

Provided by:  Jennifer Kirschenbaum, Esq.

October 18, 2018

 

Thank you to Bryan Koshers, CPA for sending over!  I've gotten several inquiries on how MLMIC Payouts will be treated tax-wise (outside my purview).  For our readers, always make sure you are utilizing the services of a competent Healthcare accountant!!!  #AllabouttheTeam... 


 

Hi Jenn-

As you know, Berkshire Hathaway has starting sending out their much anticipated “MLMIC payouts”.   In 2017, MLMIC / Berkshire Hathaway decided to convert from a mutual insurance company to a stock insurance company, this process is known as demutualization.  The result of this demutualization is, in essence, a sale of your ownership in the insurance company for the payment amount received.  This payment would be treated for tax purposes as a long term capital gain without a tax basis and thus the entire payment amount would be subject to tax.

I hope this helps you and those in the dark.  That said, there are some planning opportunities here and your client’s should discuss this transaction with their healthcare CPA for further advice.

Bryan Koshers, CPA
Koshers & Company, LLC
1094 Merrick Avenue
Merrick, NY 11566
(516) 481-1515 voice
(516) 481-1784 fax
Bryan@KoshersCo.com
KoshersCo.com

Pursuant to IRS Circular 230: If any tax advice is contained in this communication or attachments, it is not intended or written to be used, and cannot be used, for the purpose of avoiding tax or related penalties under federal, state , or local law.


*************************************************************
 

Every NYS Employer (no matter the size) is required to have Sexual Harassment Policies and Train NOW. 
Order Policies and Training here:   

https://www.kirschenbaumesq.com/page/practice-compliance


Learn about the law and what you need by watching our Free webinars: 
Webinar 1: CLICK HERE NYS Free Sexual Harassment Policies: Employer Beware (overview in 6 minutes) 
AND
Webinar 2: CLICK HERE NY Sexual Harassment Training Requirements: Protecting Your Business from your Employees

Looking for the KK Healthcare Exchange?  Click Here. 

MISSED OUR RECENT WEBINARS?  CLICK HERE ANYTIME!
Looking for HIPAA and compliance forms?  
Click here to visit our website.
Have a question or comment for Jennifer?
Contact Jennifer at Jennifer@Kirschenbaumesq.com or  at (516) 747-6700 x. 302.
Interested in having Jennifer speak at an event or
at a residency/fellowship program?
Contact Jennifer directly at (516) 747-6700 x. 302 or at Jennifer@Kirschenbaumesq.com
Click here to learn about
K&K's Prepaid Legal Audit/Investigation Defense Now!