CH. 1—NORMAL TAXES AND SURTAXES
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and to provide for the payment of dividends and similar distributions to policyholders. (7) SPECIAL DEDUCTIONS.—The special deductions allowed by part VIII (except section 248) of subchapter B (sec. 241 and following, relating to partially tax-exempt interest and to dividends received). (d)
OTHER APPLICABLE RULES. —
(1) R E N T A L VALUE OF REAL ESTATE.—The deduction under subsection (e)(3) or (4) on account of any real estate owned and occupied in whole or in part by a mutual insurance company subject to the tax imposed by section 821 shall be limited to an amount which bears the same ratio to such deduction (computed without regard to this paragraph) as the rental value of the space not so occupied bears to the rental value of the entire property. (2)
AMORTIZATION OF PREMIUM AND ACCRUAL OF DISCOUNT.—
The gross amount of income during the taxable year from interest, the deduction provided in subsection (c)(1), and the deduction allowed by section 242 (relating to partially tax-exempt interest) shall each be decreased to reflect the appropriate amortization of premium and increased to reflect the appropriate accrual of discount attributable to the taxable year on bonds, notes, debentures, or other evidences of indebtedness held by a mutual insurance company subject to the tax imposed by section 821. Such amortization and accrual shall be determined— (A) in accordance with the method regularly employed by such company, if such method is reasonable, and (B) in all other cases, in accordance with regulations prescribed by the Secretary or his delegate. (3) D O U B L E DEDUCTIONS.—Nothing in this part shall permit the same item to be deducted more than once. (e) FOREIGN M U T U A L INSURANCE COMPANIES OTHER T H A N L I F E
OR M A R I N E. — I n the case of a foreign mutual insurance company (other than a hfe or marine insurance company or a fire insurance company subject to the tax imposed by section 831), the mutual insurance company taxable income shall be the taxable income from sources within the United States (computed without regard to the deductions allowed by subsection (c)(7)), and the gross amount of income from the interest, dividends, rents, and net premiums shall be the amount of such income from sources within the United States. In the case of a company to which the preceding sentence applies, the deductions allowed in this section shall be allowed to the extent provided in subpart B of part II of subchapter N (see. 881 and following) in the case of a foreign corporation engaged in trade or business within the United States. SEC. 823. OTHER DEFINITIONS.
For purposes of this part— (1) N E T PREMIUMS.—The term "net premiums" means gross premiums (including deposits and assessments) written or received on insurance contracts during the taxable year less return premiums and premiums paid or incurred for reinsurance. Amounts returned where the amount is not fixed in the insurance contract but depends on the experience of the company or the discretion § 823(1)
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