128
PUBLIC LAW 86-69-JUNE 26, 1969
[73 S T A T.
" (c) COMPUTATION OF LOSS FROM OPERATIONS.—In computing the
loss from operations for purposes of this section— "(1) The operations loss deduction shall not be allowed. 26 USC 243-246. «(2) 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) snail be computed without regard to section 246(b) as modified by section 809(d)(8)(B). '*(d) OFFSET DEFINED.—
" (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 section 802(b)(3)) for such year to zero. "(2) OPERATIONS LOSS DPZDucTiON.—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) RULES RELATING TO N E W COMPANIES.— "(1) N E W COMPANY DEFINED.—For purposes of this part, a
Post. p. 139.
life insurance company is a new company for any taxable year only if such taxable year begins not more than 5 years after the fjj-ct day on which it (or any predecessor, if section 381(c) (22) applies or would have applied if in effect) was authorized to do business as an insurance company. " (2) LIMITATIONS ON 8-YEAR CARRYOVER.—
" (A) IN GENERAL.—For purposes of subsection (b)(1) (A) ( i i i), a life insurance company shall not be treated as a new company for any loss year if at any time during such year it was a nonqualified corporation. If, at any time during any taxable year after the lo:s year, the life insurance company is a nonqualified corporation, subsection (b)(1) (A) (iii) shall cease to apply with respect to such loss for such taxable year and all subsequent taxable years. " (B) NONQUALIFIED CORPORATION DEFINED.—For purposes
of subparagraph (A), the term 'nonqualified corporation' means any corporation connected through stock owner hip with any other corporation, if either of such corporations possesses at least 50 percent of the voting power of all classes of stock of the other such corporation. For purposes of subparagraph (A), a corporation shall be treated as becoming a nonqualified corporation at any time at which it becomes a party to a reorganization (other than a reorganization which is not described in any subparagraph of section 368(a)(1) other than subparagraphs (E) and (F) thereof).
26 USC 368. "(f)
APPLICATION OF SUBTITLE A AND SUBTITLE F.—Except as pro-
600*1-^852. ^'^^^^' vided in section 800(e), subtitle A and subtitle F shall apply in respect of operations loss carrybacks, operations loss carryovers, and the operations less deduction under this part in the same manner and to the same extent as such subtitles apply in respect of net operating loss carrybacks, net operating loss carryovers, and the net operating loss deduction.
�
