Reinsurance and the New Tax Law

10/12/2018
To offset the downward trend in vehicle margins, many dealers look to maximize their finance and insurance (F&I) income through participation in the underwriting profits on F&I products sold. But these already-complex arrangements have been further complicated by recent tax reform legislation. This article describes typical profit participation programs as well as their benefits and drawbacks from a federal income tax and business risk perspective.
Reinsurance and the New Tax Law
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