§1004 * ‘ q ( aww ec.;-zzvcrnm the company or association excluslvely for the [payment ot- 1 claims arising under oertincates ot membership. or pollelea is- 1 sued upon- the assessment xilan and not subject to any. other- 1 · use. (Feb; 26,11926yc. 27, 5 244, 44 "Smt. ,42.) v 1 See `noteat beginning of this chapter: _ I MM. Same; net income; compatationicreditag deductions.- 2 (al in the case ot a lite insurance eompany the term "·netincome"' means the gross income =less—- .4 _ _ _ · (1)_ The amount of interest received (during the taxable . yur which under paragraph ·(4) of subdivision _(b) of section 213_is· exempt from taxation under this title: __ o ° ( , ‘(2)— `An amount equal to the excess, it any? over the 'de· _duction_ specified in 'paragraph (1) of thin subdivlelon, of 4-
per centnm of me mean, of the {reserve funds required by law ’
and heldi atl the beginning and end of the taxable year, plué _ (ia case of life insuranee companies issuing policies covering ( life, health, and accident insurance combined. in- one policy; issued, on the weekly premium-_payment plan; continuing: for life and not snlijeet to cancellation) 4 per lcentmn of the mean of such reserve funds· (not required by ‘ law) held at ‘ the. beginning- and end of the taxablew year, as the commis·` ‘ o stoner linda to be neeessarylfor the protection of the holders of such .p01iciesL0n1y_; l ° 2 . ·__ _ · (3). The amon`nt—received as di‘vide1idsf(A) from a domestic _ corporation other' than a corporation; entitled, to the benefits · of section 262, and other than a corporation organized under the China Trade Act, 1922; o11 (B) from any `foreign corpora- " tion when it is éliown .t6' the satisfaction of the . commissioner that moro_tl1an_ 50 "per _ centurn of the gross income of such foreign éorporation for the `tlnree-year period ending`- with the close · of its taxable year _ preceging the declaration ·ot‘ auch [ dividends (or for such part of such period as the foreign corl,poration has been lin existence) was derived from sources owithln the United scatoo aa determined under section 217; (4) An amount *equal-_to 2 por oentum of any sums_héld at the ond of the taxable year as a reserve for dividends (other than dividends payable during the `year .fol_lowlng the taxable year) the paymont_0t which is deferred for a' period ot notrleeg than five years from the date of the pollcy·.contract_;. (5) Investment "einénsea paid during the taxable year: Pl·0rlded,`Tl1at ltlany general"ex;;ienoses are at part; assigned to. " or "inclnded ln the lnvmtment expenses, the total deduction under this paragraph shall not exceed one-fourthot 1 'per centnm ot the bookralne of thomenn of the invested assets bold' at the beginning and end of the taxable year; ° _ _ ( ( ‘ (6) Taxes and other expenses paid during the taxable year · exclusively upon or with re@t. to the ral estate owned by~ _the_ company, not including taxes assessed against local benetlti
or a kind tendln: tolncreaee the-value ot the property sed,
and not including any amount paid out {tor new bulldlngs, or for permanent improvementa or betternnents made to increase _t11e·value of any property; ·The ·ooea‘uonoa allowed ‘by‘·'thla paragraph shall bei allowed la the msetofvtaxes lmpwed `upon a shareholder ot a company upon his intermt ae shareholder, which are paid by the company ivlthout reimbursement; from the shareholder; but in such maee no deduotsion shall ,be allowed the shareholder for the amount of auch taxes :' = (7) AA nmsonable allowance for the exhaustion, wear and tear otproperty, including a reasonable allowance for obsoles- (8} All interest paid or aoeruw within the tarable year on ite indebtedneee, except on lndehtednms lneurwd or continued to purchase or mrry obligations or securltlm- (other than ohll-· gotions of the United States issued after $eptember 24, 1917, and originally subscribed for by the taxpayer) the lateral: ( upon which la wholly exeinpt from taxation under thishtltley and ‘ " · -1
VAL REVEZVUE _ ‘, 1994 __ (9) In the case ut gn domestic life insurance cempeny, the net income of wl1ich (computed without. the beuedt of this payggraph) is $25,000 or less; the sum of§2,000; but if the net incomeis more than $25,900 the tax by section 243 shall not exceed the tex gvbicl; weuld be payeble lf the $2,009 · credit were allowed, plus the emoupt et thenet inceme in t excesso£$25,000._t " .` _ • ·` ` (b) No deduction shall be made under paragrapps (6.) a`nd` (7) at subdivlsiim (a). ouaccount ez any real estate owned U end occupied in whole `cr in"‘pa.Q byga life imsumhce company unless there is included in thereturg otogrqss income the rental value of theispqge seoccupled. Sixch rental value shall be not less than a sum which ingadditien te·.a¤y‘re¤ts recqlvw fiom other tenants shall proyide a net income (after deducting taxes. depreciation, and all other-expenses) at the rate of 4 per centum per-aimum`,0f the beck valuewat theend of the taxable year `of the real estate ee-owned or occupied. (Feb. 26, 1926. c. 27,-5 245 ·(¤).*(b>{44 Stat-:17-,) ‘ d h I · See note at beginning ct tbis·`chSptei·.. I i "'1‘hi¤ title," herein referred te, ceustltutes c. 19 et this supple- . mental-title. '1‘be_§!hina Trade Act, 1922, mentioned in the text, . copetitutes c. 4 ot Title 15, Coinumcz nm Tum. Sect}-ees 213,- `217,i and 262, meptio¤ed in we text, are at out in is gu, ess, _ 'and 103Q, respectlyely, pt this supplemental title.- _. ` 1005. Same; foreigh corporations.; net imae.-—-Iix_ the case _0f gi foreign life insurance company the amount of its net income for. any] texeble `year fiom sources évithin _ the United States Fshall be the same pmgmuon etjts net meeme for the taxable ·year` from sources within and without United States, which' the reserve funds ‘requi:ed‘by· law and held by it at the end of the taxable year upon tmsixiem trgnmeted within the United States is ee the reserve funds held, by`.i»t et the end of the taxable year upon gall businm transacted. (Feb. 26, 1926, c. 27, § 215 (c), 44§mt.(·§7.)_ ” `- c · ° “
I. See `uote atnbeginnlng et this chapter. ' Other inmrsncc- companies; taxes i@e•ed; gnu in- .
come; net income; iuvcstnaf beast; `¤¤dcrwriti§g‘ inqae; _ premiums earned on imutuwe me trpcts.¤d¤rHg tnxaNc year; · leaves iécurred; expenses. incqtrrede-.(a) In lieu of the imposed, by section 230; there shall be levied, collected, end pnld _
- fm· each taxable FRU upon the`net income of every `il18§l!‘&I¥(fé ·
company (other than a` life or mutual insniéance cougpauy) u fax as follows:. 3 _ ‘ .· — ~ " `(I)- Iuidthe case GE such domestic insurance company, 12% pet ceutum of its net incoméeg . · · · (2)‘ In thecaee of- suche foreign ins§11·éu<:e`tc0mpeuy, 12%- per centum bf its nct income frcm_ sources within me United `Stewv-i e `_ (‘b) In the case of xm- insurance company subject to the tax imposed by this section--- ‘ ’ ~ » _ ‘ (1) The term "-`grees ixicexhe? means the combined .gm.==st amount earned dutlg . the taxable year, {rpm investment income. and from underwriting income as provided in this. subt division, computed on the basis et `the’ underwriting spd int vesitmenif exhibit" bij the annual étatemeut approted by the { Nationel_C0nve1:ition et `Iueunuce Commissleners`; ·(2) The term "net .iuceme" m_ea¤s` the gross iziceme as dedned in pafegraph (1)` ei; this éubdlvlslen less the deductions allowed by section 247; `.‘' · · Y ~ ‘ ` · (3) The term “iDY&8t1DQR{‘iD¢0m€·’.lHB&D8 the gmes amountot income earned during the taxable year {mm interest, div} dends, ai1d` tents, computed as follows-: · . " -. To all izaterwt, dléidmds and reuts received- dining the taxable jar, ddd- interest, dividemié and rents due, and accxjued. at the end ot the taxable yegr, and deduct ell jnterest, `divi— dends and rents due and accrued at YH? end of the preceding taxcible {@1*,; l ·· d Z
