Page:United States Statutes at Large Volume 76.djvu/1184

 1136 73 Stat. 117. 26 USC 804.

73 Stat. 120. 26 USC 805. 73 Stat. 125. 26 USC 810.

73 Stat. 122. 26 USC 809.

PUBLIC LAW 87-858-OCT. 23, 1962

[76 STAT.

assets, to the extent such retained amount exceeds the deductions allowable under section 804(c) which are attributable to such reserves, by " (ii) the means of such reserves; and " (B) with respect to reserves based on segregated asset accounts other than life insurance reserves, an amount equal to the product of— " (i) the rate of interest assumed as defined in subparagraph (A), and " (ii) the means of such reserves, shall be included as interest paid within the meaning of section 805(e)(1). ii^g^ INCREASES AND DECREASES IN RESERVES.—For purposes of subsections (a) and (b) of section 810, the sum of the items described in section 810(c) taken into account as of the close of the taxable year shall, under regulations prescribed by the Secretary or his delegate, be adjusted— " (A) by subtracting therefrom an amount equal to the sum of the amounts added from time to time (for the taxable year) to the reserves separately accounted for in accordance with paragraph (3) by reason of appreciation in value of assets (whether or not the assets have been disposed of), and " (B) by adding thereto an amount equal to the sum of the amounts subtracted from time to time (for the taxable year) from such reserves by reason of depreciation in value of assets (whether or not the assets have been disposed of). The deduction allowable for items described in paragraphs (1) aud (7) of section 809(d) with respect to segregated asset accounts shall be reduced to the extent that the amount of such items is increased for the taxable year by appreciation (or increased to the extent that the amount of such items is decreased for the taxable year by depreciation) not reflected in adjustments under the preceding sentence. "(7)

BASIS OF ASSETS HELD FOR QUALIFIED PENSION PLAN CON-

TRACTS.—In the case of contracts described in subparagraph (A), (B), (C), o r (D) of section 805(d)(1), the basis of each asset in a segregated asset account shall (in addition to all other adjustments to basis) be— " (A) increased by the amount of any appreciation in value, and " (B) decreased by the amount of any depreciation in value, to the extent that such appreciation and depreciation are from time to time reflected in the increases and decreases in reserves or other items in paragraph (6) with respect to such contracts. "(8) ADDITIONAL SEPARATE COMPUTATIONS.—Under regulations prescribed by the Secretary or his delegate, such additional separate computations shall be made, with respect to the items separately accounted for in accordance with paragraph (3), as may be necessary to carry out the purposes of this subsection and this part." (b)

73 Stat. 115. 26 USC 802.

TAX I N CASE OF CAPITAL G A I N S. — (1) ALTERNATIVE TAX.—Paragraph (2) of section 802(a) of

Yi Code (relating to tax in case of capital gains) is amended to read as follows: "(2)

ALTERNATIVE TAX I N CASE OF CAPITAL GAINS.—If for

any

taxable year beginning after December 31, 1961, the net long-term capital gain of any life insurance company exceeds the net shortterm capital loss, then, in lieu of the tax imposed by paragraph (1), there is hereby imposed a tax (if such tax is less than the

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