Page:United States Statutes at Large Volume 98 Part 1.djvu/771

 PUBLIC LAW 98-369—JULY 18, 1984 -

"(5) OPERATIONS LOSS DEDUCTION.—The operations loss deduction (determined under section 810).

98 STAT. 723 Post, p. 738.

"(6) ASSUMPTION BY ANOTHER PERSON OF LIABILITIES UNDER

INSURANCE, ETC., CONTRACTS.—The consideration (other than consideration arising out of indemnity reinsurance) in respect of the assumption by another person of liabilities under insurance and annuity contracts. "(7) REIMBURSABLE DIVIDENDS.—The amount of policyholder

dividends which— "(A) are paid or accrued by another insurance company in respect of policies the taxpayer has reinsured, and "(B) are reimbursable by the taxpayer under the terms of the reinsurance contract. "(8) OTHER DEDUCTIONS.—Subject to the modifications provided by subsection (b), all other deductions allowed under this subtitle for purposes of computing taxable income. Except as provided in paragraph (3), no amount shall be allowed as a deduction under this part in respect of policyholder dividends. "(b) MODIFICATIONS.—The modifications referred to in subsection (a)(8) are as follows: "(1) INTEREST.—In applying section 163 (relating to deduction for interest), no deduction shall be allowed for interest in i respect of items described in section 807(c). Post, p. 726. "(2) BAD DEBTS.—Section 166(c) (relating to reserve for bad -i debts) shall not apply. "(3) CHARITABLE, ETC., CONTRIBUTIONS AND GIFTS.—In applying

1'

section 170— "(A) the limit on the total deductions under such section t? provided by section 170(b)(2) shall be 10 percent of the life ii> 1. insurance company taxable income computed without regard to— iiMA £ "(i) the deduction provided by section 170, "(ii) the deductions provided by paragraphs (3) and (4) 3fi loo of subsection (a), "(iii) the special life insurance company deduction and the small life insurance company deduction, "(iv) any operations loss carryback to the taxable year under section 810, and "(v) any capital loss carryback to the taxable year under section 1212(a)(1), and u-, " "(B) under regulations prescribed by the Secretary, a rule similar to the rule contained in section 170(d)(2)(B) (relating biiK,; to special rule for net operating loss carryovers) shall be applied. "(4) AMORTIZABLE BOND PREMIUM.—

"(A) IN GENERAL.—Section 171 shall not apply. '>

"(B) CROSS REFERENCE.— "For rules relating to amortizable bond premium, see section 811(b).

"(5) N E T OPERATING LOSS DEDUCTION.—Except as provided by section 844, the deduction for net operating losses provided in section 172 shall not be allowed. "(6) DIVIDENDS RECEIVED DEDUCTION.—Except as provided in subsection (a)(4), the deductions for dividends received provided by sections 243, 244, and 245 shall not be allowed.

Post, p. 740.

�