SECTION 1. PURPOSE

This revenue procedure prescribes unpaid loss discount factors for the 2018 accident year for use in computing discounted unpaid losses under § 846 of the Internal Revenue Code. The unpaid loss discount factors also serve as salvage discount factors for the 2018 accident year for use in computing discounted estimated salvage recoverable under § 832. The discount factors prescribed herein were determined under § 846, as amended by section 13523 of the Tax Cuts and Jobs Act, Pub. L. No. 115–97 (December 22, 2017) (“TCJA”), and proposed regulations under § 846 (REG–103163–18) published in the Federal Register (83 FR 55646) on November 7, 2018 (the “proposed regulations”). If necessary after the proposed regulations are published as final regulations, the Department of the Treasury (the “Treasury Department”) and Internal Revenue Service (“IRS”) intend to publish for each property and casualty line of business revised unpaid loss discount factors for the 2018 accident year for use in taxable years ending on or after the date the final regulations are published.