Tax‐planning strategies will not enhance firm value if the tax benefit is less than the (nontax) costs incurred to achieve such benefit. Effective tax planning therefore requires the joint consideration of tax benefits and the costs of obtaining those benefits, rather than a myopic focus on only tax minimization. This case presents the opportunity for you to evaluate alternative sources of tax law and balance tax and nontax concerns (including ethical considerations) as you make the same loss reserve reporting decisions that property‐casualty (P&C) insurers faced following the Tax Reform Act of 1986 (TRA86).

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