76 STAT. ]
PUBLIC LAW 8 7 - 8 3 4 - O C T. 16, 1962
995
"(4) TERMINATION OF TAXABILITY UNDER SECTION 8 21.—If the taxpayer is not subject to tax under section 821 for any taxable Ante, p. 989. year, the entire amount in the account at the close of the preceding taxable year shall be subtracted from the account in such preceding taxable year. " (5) ELECTION TO SUBTRACT AMOUNT FROM ACCOUNT.—
" (A) A taxpayer may elect for any taxable year for which it is subject to tax under section 821(a) to subtract from its protection against loss account any amount which, but for the application of this subparagraph, would be in such account as of the close of such taxable year. " (B) The election provided by subparagraph (A) for any taxable year shall be made (in such manner and in such form as the Secretary or his delegate may by regulations prescribe) after the close of such taxable year and not later than the time prescribed by law for filing the return (including extensions thereof) for the taxable year following such taxable year. Such an election, once made, may not be revoked. "SEC. 825. UNUSED LOSS DEDUCTION. " (a) AMOUNT OF DEDUCTION.—For purposes of this part, the unused loss deduction for the taxable year shall be an amount equal to the unused loss carryovers or carrybacks to the taxable year. "(b) UNUSED Loss DEFINED.—For purposes of this part, the term 'unused loss' means, with respect to any taxable year, the amount (if any) by which— "(1) the sum of the statutory underwriting loss and the investment loss, exceeds "(2) the sum of— "^A) the taxable investment income, " (B) the statutory underwriting income, and " (C) the amounts required by section 824(d) to be subr Ante. p. 994. tracted from the protection against loss account. "(c) Loss YEAR DEFINED.—For purposes of this part, the term 'loss year' means, with respect to any company subject to the tax imposed by section 821(a), any taxable year in which the unused loss <^as defined in subsection (b)) of such taxpayer is more than zero. " (d) YEARS TO W H I C H CARRIED.—The unused loss for any loss year shall be— "(1) an unused loss carryback to each of the 3 taxable yp°rs preceding the loss year, and "(2) an unused loss carryover to each of the 5 taxable years following the loss year. " (e) AMOUNT OF CARRYBACKS AND CARRYOVERS.—The entire amount
of the unused loss for any loss year shall be carried to the earliest of the taxable years to which such loss may be carried. The portion of such loss which shall be carried to each of the other taxable years shall he the excess (if any) of the amount of such loss over the sum of the offsets (as defined in subsection (f)) for each of the prior taxable years to which such loss may be carried. "(f) OFFSET DEFINED.—For purposes of subsection (e), the term 'offset' means with respect to any taxable year (hereinafter referred to as the 'offset year')— " (1) in the case of an unused loss carryback from the loss year to the offset year, the mutual insurance company taxable income for the offset year; or "(2) in the case of an unused loss carryover from the loss year to the offset year, an amount equal to the sum of—.
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