Page:United States Statutes at Large Volume 76.djvu/1040

 992

P U B L I C LAW 8 7 - 8 3 4 - O C T. 16, 1962

[76

STAT.

i n g o u t the heading and subsection (a) and inserting i n lieu thereof the following: "SEC. 822. DETERMINATION OF TAXABLE INVESTMENT INCOME. " (a) DEFINITIONS. — For purposes of t h i s part — " (1) The term ' tax a b l e investment income' means the gross investment income, m i n u s the deductions provided i n subsection (c). " (2) The term 'investment loss' means the a m o u n t by which the deductions provided i n subsection (c) exceed the gross investment income." (2)

26 USC 822.

(c)

and

(e)

of

section 822 a r e each amended by striking o u t " m u t u a l insurance company tax a b l e i n c o m e " each place i t f^ppears and inserting i n lieu thereof " tax a b l e investment income". (3)

26 USC 246.

CONFORMING AMENDMENTS,—Subsections

D IV I D E N D S RECEIVED DEDUCTION.—Section

822(c)(7)

(re-

l a t i n g to special deductions) is amended by a d d i n g a t the e n d thereof the following new sentence: " I n a p p l y i n g section 2 4 6 (b) ( r e l a t i n g to l i m i t a t i o n on a g g r e g a t e a m o u n t of deductions for d i v i d e n d s received) for purposes of t h i s paragraph, the reference in such section to ' tax a b l e income' shall be t r e a t e d as a reference to 'taxable investment income'." (4) REDESIGNATION O F SECTION 8 2 3. — Part II of subchapter

L

of chapter 1 is amended by striking o u t " For purposes of t h i s part — ", and inserting i n lieu thereof ( a t the e n d of section 822) the following: " (f) DEFINITIONS. — For purposes of t h i s part — ". (c) STATUTORY U N D E R W R I T I N G I N C O M E OR L o s s. — Part II of s u b -
 * SEC. 823. OTHER DEFINITIONS.

26 USC 832. Post, pp. 997, 998.

Supra; ) use 822.

chapter L of chapter 1 is amended by a d d i n g after section 8 2 2 (f) ( a s r e designated by subsection (b)(4) of t h i s section) the following new sections: "SEC. 823. DETERMINATION OF STATUTORY UNDERWRITING INCOME OR LOSS. " (a) IN GENERAL. — For purposes of t h i s part — " (1) The term ' s t a t u to r y under writing income' means the amount by which— " (A) the gross income which would be t a k e n iiito account i n c o m p u t i n g tax a b l e income under section 832 if the tax p a y e r were subject to the tax imposed by section 831, reduced by the gross investment income, exceeds " (B) the sum of (i) the deductions which would be t a k e n into account i n c o m p u t i n g tax a b l e income if the tax p a y e r were subject to the tax imposed by section 831, reduced by the deductions provided m section 8 2 2 (c), p l u s ( i i) the deductions provided i n subsection (c) and section 8 2 4 (a). " (2) The term^^statutory under writing loss' means the excess of the a m o u n t referred to in paragraph (1)(B) over the a m o u n t referred to in paragraph (1)(A). " (b) M O D I F I C A T I O N S. — I n a p p l y i n g subsection (a) — "(1)

26 USC 172.

N E T OPERATING LOSS DEDUCTION. — The deduction for n e t

operating losses provided in section 172 shall not be allowed. " (2) I N T E R I N S U R E R S. — I n the case of a m u t u a l insurance company which is a n i n t e r i n s u r e r or reciprocal under w r i t e r — " (A) the r e shall be allowed as a deduction the increase for the tax a b l e year i n savings credited to subscriber accounts, o r " (B) the r e shall be included as a n item of gross income the decrease for the tax a b l e year i n savings credited to subscriber accounts.

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