Humana, Inc. v. Commissioner
United States Tax Court
Humana Inc. and its wholly owned foreign subsidiary own all of the capital stock of a captive insurance subsidiary incorporated by the parent corporation. The parent corporation paid to the captive insurance subsidiary amounts which were treated as premiums for insurance coverage of the parent and subsidiaries. The parent allocated and charged to the subsidiaries portions of the amounts paid representing the share each bore for the hospitals each operated.
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Humana Inc. and its wholly owned foreign subsidiary own all of the capital stock of a captive insurance subsidiary incorporated by the parent corporation. The parent corporation paid to the captive insurance subsidiary amounts which were treated as premiums for insurance coverage of the parent and subsidiaries. The parent allocated and charged to the subsidiaries portions of the amounts paid representing the share each bore for the hospitals each operated. The remainder represents the parent's share for the hospitals which it operated. The total sums were deducted on the consolidated income…
1Opinion of the Court
GOFFE, Judge:
The Commissioner determined deficiencies in income tax against petitioner for the following taxable years:
Docket No. TYE Aug. 31— Deficiency
15292-80 1976 $4,615,905
1977 9,409,814
17130-82 1978 7,723,542
1979 20,460,078
After concessions by the parties, one issue remains for our decision, i.e., to what extent, if any, may petitioner deduct as ordinary and necessary business expenses amounts paid to a wholly owned captive insurance company which were treated as premiums for general liability and medical malpractice insurance.
We first decided the case in a Memorandum Opinion, T.C.…
2Cases cited11 opinions
- Carnation Company v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1981
- Carnation Co. v. CommissionerUnited States Tax Court · 1978
- Spring Canyon Coal Co. v. Commissioner of Int. Rev.Court of Appeals for the Tenth Circuit · 1930
- Clougherty Packing Co. v. CommissionerUnited States Tax Court · 1985
- Beech Aircraft Corporation v. United StatesCourt of Appeals for the Tenth Circuit · 1986
6 more not listed; retrieve them via the Exa API.
3Cited by28 opinions
- Gulf Oil Corporation, in No. 89-2049 v. Commissioner of Internal Revenue. Commissioner of Internal Revenue, in No. 89-2050 v. Gulf Oil CorporationCourt of Appeals for the Third Circuit · 1990
- Humana Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1989
- Sears, Roebuck & Co. v. CommissionerUnited States Tax Court · 1991
- Amerco v. CommissionerUnited States Tax Court · 1991
- Gulf Oil Corp. v. CommissionerUnited States Tax Court · 1987
23 more not listed; retrieve them via the Exa API.