Page:United States Statutes at Large Volume 70.djvu/104

 48

PUBLIC LAW 429-MAR. 13, 1966

[70 S T A T.

"(3) REAL ESTATE EXPENSES.—Taxes (as provided in section

le^icT^iM'^*

68Aj|tflt._3^2^i.

al'uicf*!?^^' 68A Stat. 207. 26 USC 611.

68A Stat. 321.

^^^^' ^^^ other expenses, paid or accrued during the taxable year exclusively on or with respect to the real estate owned by the company. Xo deduction shall be allowed under this paragraph for any amount paid out for new buildings, or for permanent improvements or betterments made to increase the value of any property.'' (5) Paragraph (6) of section 822(c) is amended by striking out "the sum of interest, dividends, rents, and net premiums received. I n the application of section 1211" and inserting in lieu thereof '"the sum of the items described in subsection (b) (other than paragraph (1)(D) thereof) and net premiums received. I n the application of section 1212". (6) Section 822(c) is amended by adding at the end thereof the following new paragraphs: "(8) TRADE OR BUSINESS DEDUCTIONS.—The deductions allowed by this subtitle (without regard to this part) which are attributable to any trade or business (other than an insurance business) carried on hj the insurance company, or by a partnership of which the insurance company is a partner; except that for purposes of this paragraph— " (A) any item, to the extent attributable to the carrying on of the insurance business, shall not be taken into accoiuit, and " (B) the deduction for net operating losses provided in section 172 shall not be allowed. " (9) DEPLETION.—The deduction allowed by section 611 (relating to depletion)." (7) Section 822(d)(1) is amended by striking out "subsection (e)(3) or (4) " and inserting in lieu thereof "subsection (c)(3) or (4) ". (8) Section 822(e) is amended by striking out "interest, dividends, rents," and inserting in lieu thereof "items described in subsection (b) (other than paragraph (1)(D) thereof)". (b) STOCK COMPANIES (OTHER T H A N L I F E). — The following provisions of section 832 are hereby amended as follows: (1) Paragraph (4) of subsection (b) is amended by striking out "section 806" and inserting "section 801(b) ". (2) Paragraph (5) of subsection (c) is amended by striking out "interest, dividends, rents, and net premiums received. I n the application of section 1211" and inserting in lieu thereof "the items described in section 822(b) (other than paragraph (1) (D) thereof) and net premiums received. I n the application of SCCtioU 1 2 1 2 ".

(3) Paragraph (8) of subsection (c) is amended by inserting after "section 167" the following: "and the deduction allowed by section 611 (relating to depletion)". SEC. 4. ANNUAL ACCOUNTING PERIOD OF INSURANCE COMPANIES TO BE THE CALENDAR YEAR. (a) Part IV of subchapter L of chapter 1 of the Internal Revenue 11 ulc*841^,^842. (>ode of 1954 (relating to provisions of general application with respect to insurance companies) is hereby amended by adding at the end thereof the following new section: "SEC. 843. ANNUAL ACCOUNTING PERIOD. "For purposes of this subtitle, the annual accounting period for each insurance company subject to a tax imposed by this subchapter shall be the calendar year."

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