Page:United States Statutes at Large Volume 78.djvu/96

 54

9fi'^i^r^*i=;n4^'

26 USC 80^^.' Ante, p. 29.' Post. p. 120.

PUBLIC LAW 88-272-FEB. 26, 1964

[78 STAT.

" (A) (\)XSKXT OF MEMHKKs,—Such iittiliiited orU}) files M terminjition of such election (at such time and in such, manner as the Secretary or his deleg'ate by regulations prescribes) with respect to such taxable year of the coiinnon parent corporation, and each corporation which is a member of such affiliated grouj) at any time during its taxable year which includes the last day of such taxable year of the common parent corporation consents to such termination, or " (B) REFLSAL BY NEW MEMBER TO CONSENT.—During such taxable year of the common parent corporation such affiliated group includes a member which— " (i) was not a member of such group during such common parent corporation's immediately pi-eceding taxable year, and "(ii) such member files a statement that it does not consent to the election at such time and in such manner as the Secretary or his delegate by regulations prescribes. "(5) DEFINITION OP AFFILIATED GROUP.—For purposes of this subsection, the term 'affiliated group' has the meaning assigned ^^ it by section 1504(a), except that for such purposes sections 1504(b)(2) and 1504(c) shall not apply. "(6) SPECIAL RULES FOR INSURANCE COMPANIES.—If an election under this subsection is effective for the taxable year of an insu ranee company subject to taxation under section 802 or 821— "(-A-) part II of Subchapter B of chapter 6 (relating to certain controlled corporations) shall be applied without regard to section 1563(a)(4) (relating to certain insurance companies) and section 1563(b)(2)(D) (relating to certain excluded members) with respect to such company and the other corporations which are members of the controlled group of corporations (as determined under section 1563 without regard to subsections (a)(4) and (b)(2)(D)) of which such company is a member, and "(13) for purposes of paragraph (1), a distribution by such company out of earnings and profits of a taxable year for which an election under this subsection was not effective, and for which such company was not a component member of a controlled group of corporations within the meaning of section 1563 solely by reason of section 1563(b)(2)(D), shall not be a qualifying dividend. "(c)

SPECIAL RULES FOR CERTAIN DISTRIBUTIONS.—For purposes

of subsection (a) — 26 USC 591. "(1) Any amount allowed as a deduction under section 501 (relating to deduction for dividends paid by mutual savings banks, etc.) shall not he treated as a dividend. "(2) A dividend received from a regulated investment com"t"/^' ^99^^' P^^^^y shall be subject to the limitations prescribed in section 854. 26 USC 8*54. "(3) Any dividend received from a real estate investment trust which, for the taxable year of the trust in which the dividend is paid, (Qualifies under part II of subchapter M (section 856 and 26 us^c 85^858 following) shall uof be treated as a dividend. Post, p. 55. ' "(4) Any dividend received which is described in section 244 26 USC 244. (relating to dividends received on preferred stock of a public utility) shall not be treated as a dividend. •'(d)

26 USC 245^*

CERTAIN

DIVII>ENDS

FROM

FOREIGN

CORPORATIONS.—For

purposes of Rubsecti<m (a) and for purposes of section 245, any dividend from a foreign corporation from earnings and profits accumulate<l by a domestic cor^xiration during a period with respect to which such domestic corporation was subject to taxation under this chapter

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