US Tax Court allows deduction for captive insurance premiums

The US Tax Court has allowed deductions for insurance premiums paid by affiliated subsidiaries to a captive subsidiary (Rent-A-Center, Inc. and Affiliated Subsidiaries v. Commissioner of Internal Revenue, Docket Nos. 8320-09, 6909-10, 21627-10, 14 January 2014).
The case involved a US parent corporation and its approximately 15 affiliated subsidiaries (collectively, the taxpayer) that conducted business through stores owned and operated by the subsidiaries. The parent corporation neither owned s…