Page:United States Statutes at Large Volume 100 Part 3.djvu/600

 100 STAT. 2408

PUBLIC LAW 99-514—OCT. 22, 1986 (11) Section 842 is amended by striking out "part I, II, or III" and inserting in lieu thereof "part I or 11". (12) Section 844 is amended by striking out subsections (a) and (b) and inserting in lieu thereof the following: "(a) GENERAL RULE.—If an insurance company—

"(1) is subject to the tax imposed by part I or II of this subchapter for the taxable year, and "(2) was subject to the tax imposed by a different part of this subchapter for the taxable year, then any operations loss carryover under section 810 (or the corresponding provisions of prior law) or net operating loss carryover under section 172 (as the case may be) arising in such prior taxable year shall be included in its operations loss deduction under section 810(a) or net operating loss deduction under section 832(c)(10), as the case may be. "(b) LIMITATION.—The amount included under section 810(a) or 832(c)(10) (as the case may be) by reason of the application of subsection (a) shall not exceed the amount that would have constituted the loss carryover under such section if for all relevant taxable years the company had been subject to the tax imposed by the part referred to in subsection (a)(1) rather than the part referred to in subsection (a)(2). For purposes of applying the preceding sentence, section 810(b)(1)(C) (relating to additional years to which losses may be carried by new life insurance companies) shall not apply." (13) Section 891 is amended by striking out "821,". (14) Subsection (a) of section 1201 is amended by striking out "821(a) or (c) and 831(a)" and inserting in lieu thereof "831(a) or

0))".

(15) Paragraph (2) of section 1504flt>) is amended by striking out "or 821'" (16) Paragraph (2)(A) of section 1504(c) is amended by striking out "or 821". (17) Subparagraph (D) of section 1563(b)(2) is amended by striking out "or section 821". (18) The table of sections for part II of subchapter L of chapter 1 (as redesignated by subsection (a)) is amended by adding at the end thereof the following new items: "Sec. 834. Determination of taxable investment income. "Sec. 835. Election by reciprocal." (d) TRANSITIONAL RULES.— (1) TREATMENT OF AMOUNTS IN PROTECTION AGAINST LOSS AC-

COUNT.—In the case of any insurance company which had a protection against loss account for its last taxable year beginning before January 1, 1987, there shall be included in the gross income of such company for any taxable year beginning after December 31, 1986, the amount which would have been included in gross income for such taxable year under section 824 of the Internal Revenue Code of 1954 (as in effect on the day before the date of the enactment of this Act). For purposes of the preceding sentence, no addition to such account shall be made for any taxable year beginning after December 31, 1986. (2) TRANSITIONAL RULE FOR UNUSED LOSS CARRYOVER UNDER SECTION 825.—Any unused loss carryover under section 825 of

the Internal Revenue Code of 1954 (as in effect on the day before the date of the enactment of this Act) which—

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