Our Federal Tax Group delves into proposed Treasury regulations addressing exempt organizations’ below-market loans used to pay for split-dollar life insurance premiums.
- Split-dollar life insurance loans became even more beneficial after the TCJA added a new excise tax on exempt organizations under Section 4960
- Imputed income from below-market split-dollar life insurance loans must be included in Section 4960 calculation
- Imputed income can be avoided by charging interest at the historically low applicable federal rate
Read the full advisory here.
To learn more about our exempt organization practice, click here.
