Page:United States Statutes at Large Volume 98 Part 1.djvu/787

 PUBLIC LAW 98-369—JULY 18, 1984 -le:;

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"(B) an operations loss carryover to each of the 15 taxable years following the loss year, and "(C) if the life insurance company is a new company for the loss year, an operations loss carryover to each of the 3 taxable years following the 15 taxable years described in subparagraph (B).

98 STAT. 739

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"(2) AMOUNT OF CARRYBACKS AND CARRYOVERS.—The entire

amount of the loss from operations for any loss year shall be carried to the earliest of the taxable years to which (by reason of paragraph (1)) such loss may be carried. The portion of such loss which shall be carried to each of the other taxable years shall be the excess (if any) of the amount of such loss over the sum of the offsets (as defined in subsection (d)) for each of the prior taxable years to which such loss may be carried. "(3) ELECTION FOR OPERATIONS LOSS CARRYBACKS.—In the case of a loss from operations for any taxable year, the taxpayer may elect to relinquish the entire carryback period for such loss. Such election shall be made by the due date (including extensions of time) for filing the return for the taxable year of the loss from operations for which the election is to be in effect, and, once made for any taxable year, such election shall be irrevocable for that taxable year. "(c) COMPUTATION OF Loss FROM OPERATIONS.—For purposes of this section— "(1) IN GENERAL.—The term 'loss from operations' means the excess of the life insurance deductions for any taxable year over the life insurance gross income for such taxable year. "(2) MODIFICATIONS.—For purposes of paragraph (1)— wv. "(A) the operations loss deduction shall not be allowed, and "(B) the deductions allowed by sections 243 (relating to dividends received by corporations), 244 (relating to dividends received on certain preferred stock of public utilities), and 245 (relating to dividends received from certain foreign corporations) shall be computed without regard to section 246(b) as modified by section 805(a)(4).

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Ante, p. 722.

"(d) OFFSET DEFINED.—

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"(1) IN GENERAL.—For purposes of subsection (b)(2), the term 'offset' means, with respect to any taxable year, an amount equal to that increase in the operations loss deduction for the taxable year which reduces the life insurance company taxable income (computed without regard to paragraphs (2) and (3) of section 804) for such year to zero. . Ante, p. 722. "(2) OPERATIONS LOSS DEDUCTION.—For purposes of paragraph

(1), the operations loss deduction for any taxable year shall be computed without regard to the loss from operations for the loss year or for any taxable year thereafter. "(e) N E W COMPANY DEFINED.—For purposes of this part, a life insurance company is a new company for any taxable year only if such taxable year begins not more than 5 years after the first day on which it (or any predecessor, if section 381(c)(22) applies) was authorized to do business as an insurance company. "(f) APPLICATION OF SUBTITLES A AND F IN RESPECT OF OPERATION

LOSSES.—Except as provided in section 805(b)(5), subtitles A and F shall apply in respect of operation loss carrybacks, operation loss carryovers, and the operations loss deduction under this part, in the same manner and to the same extent as such subtitles apply in

26 USC l, 6001.

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