Taxable Years Sec. 188. Different taxable years of partner and partnership. Taxable Years Sec. 188. Different taxable years of partner and partnership. If the taxable year of a partner If the taxable year of a partner is different from that of the is different from that of the partnership, the inclusions with partnership, the inclusions with respect to the net income of the respect to the net income of the partnership, in computing the net partnership, in computing the net income of the partner for his tax-income of the partner for his taxable year, shall be based upon the able year, shall be based upon the net income of the partnership for net income of the partnership for any taxable year of the partner- any taxable year of the partnership (whether beginning on, before, ship (whether beginning on, before, or after January 1, 1939) ending or after January 1, 1939) ending within or with the taxable year of within or with the taxable year of the partner. the partner. Sec. 189. Net operating losses. Sec. 189. Net operating losses. The benefit of the deduction for The benefit of the deduction for net operating losses allowed by net operating losses allowed by secsection 23 (s) shall not be allowed tion 23 (s) shall not be allowed to to a partnership but shall be al- a partnership but shall be allowed lowed to the members of the part-to the members of the partnership nership under regulations pre- under regulations prescribed by the scribed by the Commissioner with Commissioner with the approval of the approval of the Secretary. Sec. 189, I. R. C., supra, added by Sec. 211 (d), R. A. of 1939, approved June 29, 1939. Sec. 190. Allowance of amortization deduction. In the case of emergency facilities of a partnership, the benefit of the deduction for amortization allowed by section 23 (t) shall not be allowed to the members of a partnership but shall be allowed to the partnership in the same manner and to the same extent as in the case of an individual. Sec. 190, I. R. C., supra, added to I. R. C. by Sec. 155 (h), R. A. of 1942. Sec. 155 (i) of said Act makes amendment effective as of Oct. 8, 1940. Supplement G-Insurance Companies Sec. 201. Tax on life insurance companies. Sec. 201. (b) Imposition of tax. the Secretary. Sec. 201. (b) (1) In general.— Sec. 201. (b) (1) In general.— In lieu of the tax imposed by sec- In lieu of the tax imposed by sections 13 and 14, there shall be tions 13 and 14, there shall be levied, collected, and paid for each levied, collected, and paid for each taxable year upon the normal-tax taxable year upon the special class net income of every life insurance net income of every life insurance company a tax at the rates provided company a tax of 162 per centum in section 13 or section 14 (b). of the amount thereof. Supplement G-Insurance Companies Sec. 201. Tax on life insurance companies. Sec. 201. (b) Imposition of tax. Sec. 201. (b) (1) In general. See p. 302, Eighth Edition. tion 13 or section 14 (b) and in tion 13 or section 14 (b) and in Taxable Years Sec. 201. (a) (2) Foreign life in- Sec. 201. (a) (2) Foreign life in- Sec. 201. (b) (2) Normal-tax net surance companies.-A foreign life surance companies.-A foreign life income of foreign life insurance insurance company carrying on a insurance company carrying on a companies.-In the case of a forlife insurance business within the life insurance business within the eign life insurance company, the United States if with respect to its United States if with respect to its normal-tax net income shall be an United States business it would United States business it would amount which bears the same ratio qualify as a life insurance company qualify as a life insurance company to the normal-tax net income, comunder subsection (b) shall be tax- under subsection (b) shall be tax-puted without regard to this paraable in the same manner as a do-able in the same manner as a do- graph, as the reserve funds remestic life insurance company mestic life insurance company quired by law and held by it at the except that the determinations except that the determinations end of the taxable year upon businecessary for the purposes of this necessary for the purposes of this ness transacted within the United chapter shall be made on the basis chapter shall be made on the basis States bear to the reserve funds of the income, disbursements, as- of the income, disbursements, assets, held by it at the end of the taxable sets, and liabilities reported in the and liabilities reported in the an- year upon all business transacted. annual statement for the taxable nual statement for the taxable year year of the United States business of the United States business of of such company on the form ap- such company on the form approved proved for life insurance companies for life insurance companies by the by the National Association of In- National Association of Insurance surance Commissioners. Commissioners. Sec. 201. (a) (3) No United Sec. 201. (a) (3) No United Sec. 201. (b) (3) No United States insurance business.-For- States insurance business.-For-States insurance business.-Foreign life insurance companies not eign life insurance companies not eign life insurance companies not carrying on an insurance business carrying on an insurance business carrying on an insurance business within the United States shall not within the United States shall not within the United States and holdbe taxable under this section but be taxable under this section but ing no reserve funds upon business shall be taxable as other foreign shall be taxable as other foreign transacted within the United corporations. States, shall not be taxable under this section but shall be taxable as other foreign corporations. corporations. Sec. 201 (b), I. R. C., supra, amended by Sec. 203, R. A. of 1939, to read as above. Sec. 229 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1939. For Sec. 201 (b), I. R. C., before amendment, see Sec. 201 (b), I. R. C., in 1939 column. Sec. 201. (b) Definition of life Sec. 201. (b) Definition of life Sec. 201. (a) Definition.-When insurance company.-When used insurance company.-When used in used in this chapter the term "life in this chapter, the term "life in- this chapter, the term "life insur- insurance company" means an insurance company" means an insurance company” means an insurance surance company engaged in the ance company which is engaged in company which is engaged in the business of issuing life insurance the business of issuing life insur-business of issuing life insurance and annuity contracts (including ance and annuity contracts (either and annuity contracts (either sepa- contracts of combined life, health, separately or combined with health rately or combined with health and and accident insurance), the reand accident insurance), or noncan- accident insurance), or noncancel- serve funds of which held for the cellable contracts of health and ac- lable contracts of health and ac- fulfillment of such contracts comcident insurance, and the life cident insurance, and the life prise more than 50 per centum of insurance reserves (as defined in insurance reserves (as defined in its total reserve funds. subsection (c) (2)) plus unearned subsection (c) (2)) plus unearned premiums and unpaid losses on premiums and unpaid losses on nonnoncancellable life, health, or acci- cancellable life, health, or accident dent policies not included in life policies not included in life insurinsurance reserves, of which com-ance reserves, of which comprise prise more than 50 per centum of more than 50 per centum of its total its total reserves. For the purpose reserves. For the purpose of this of this subsection, total reserves subsection, total reserves means life means life insurance reserves, un-insurance reserves, unearned pre Taxable Years Taxable Years Taxable Years Beginning before 1939 Sec. 201. (b) (2) Normal-tax Sec. 201. (b) (2) Special class net income of foreign life insur- net income of foreign life insurance companies. In the case of a ance companies. In the case of a foreign life insurance company, the foreign life insurance company, normal-tax net income shall be an the special class net income shall amount which bears the same ratio be an amount which bears the to the normal-tax net income, com- same ratio to the special class net puted without regard to this para- income, computed without regard graph, as the reserve funds re- to this paragraph, as the reserve quired by law and held by it at the funds required by law and held by end of the taxable year upon busi- it at the end of the taxable year ness transacted within the United upon business transacted within States bear to the reserve funds the United States bear to the reheld by it at the end of the taxable serve funds held by it at the end year upon all business transacted. of the taxable year upon all business transacted. Sec. 201. (b) (2) Special class net income of foreign life insurance companies. See p. 302, Eighth Edition. See p. 302, Eighth Edition. Sec. 201. (b) (3) No United Sec. 201. (b) (3) No United Sec. 201. (b) (3) No United States insurance business.-For- States insurance business.-For- States insurance business. eign life insurance companies not eign life insurance companies not carrying on an insurance business carrying on an insurance business within the United States and hold- within the United States and holding no reserve funds upon business ing no reserve funds upon business transacted within the United transacted within the United States, shall not be taxable under States, shall not be taxable under this section but shall be taxable this section but shall be taxable as other foreign corporations. as other foreign corporations. Sec. 201 (b), I. R. C., supra, amended by Sec. 203, R. A. of 1939, to read as above. Sec. 229 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1939. For Sec. 201 (b), I. R. C., before amendment, see Sec. 201 (b), I. R. C., in 1939 column. Sec. 201. (a) Definition.-When Sec. 201. (a) Definition.-When used in this chapter the term "life used in this chapter the term "life insurance company" means an in- insurance company" means an insurance company engaged in the surance company engaged in the business of issuing life insurance business of issuing life insurance and annuity contracts (including and annuity contracts (including contracts of combined life, health, contracts of combined life, health, and accident insurance), the re- and accident insurance), the reserve funds of which held for the serve funds of which held for the fulfillment of such contracts com- fulfillment of such contracts comprise more than 50 per centum of prise more than 50 per centum of its total reserve funds. its total reserve funds. Sec. 201. (a) Definition. See p. 300, Eighth Edition. earned premiums and unpaid losses miums and unpaid losses not in- Sec. 201. (c) Other definitions.In the case of a life insurance company Sec. 201. (c) (1) Gross income. -The term "gross income" means the gross amount of income received during the taxable year from interest, dividends, and rents. the performance of funeral services Sec. 201. (c) Other definitions.— In the case of a life insurance company Sec. 201. (c) (1) Gross income.— The term "gross income" means the gross amount of income received during the taxable year from interest, dividends, and rents. Taxable Years Sec. 202. Gross income of life insurance companies. Sec. 202. (a) Gross income defined. Sec. 202. (a) (1) In general.— In the case of a life insurance company the term "gross income" means the gross amount of income received during the taxable year from interest, dividends, and rents. Sec. 202. (a) (2) Cross refer ence. For inclusion in computation of tax of amount specified in shareholder's consent, see section 28. Sec. 201. (c) (2) Life insurance Sec. 201. (c) (2) Life insurance Sec. 202. (b) Reserve funds rereserves. The term "life insurance reserves.-The term "life insurance quired by law defined. The term reserves" means amounts which are reserves" means amounts which are "reserve funds required by law" computed or estimated on the basis computed or estimated on the basis includes, in the case of assessment of recognized mortality or morbid- of recognized mortality or morbid- insurance, sums actually deposited ity tables and assumed rates of ity tables and assumed rates of by any company or association interest, and which are set aside to interest, and which are set aside to with State or Territorial officers mature or liquidate, either by pay-mature or liquidate, either by pay-pursuant to law as guaranty or rement or reinsurance, future unac- ment or reinsurance, future unac- serve funds, and any funds maincrued claims arising from life crued claims arising from life tained under the charter or articles insurance, annuity, and noncancel- insurance, annuity, and noncancel- of incorporation of the company or lable health and accident insurance lable health and accident insurance association exclusively for the paycontracts (including life insurance contracts (including life insurance ment of claims arising under ceror annuity contracts combined with or annuity contracts combined with tificates of membership or polnoncancellable health and accident noncancellable health and accident icies issued upon the assessment insurance) involving, at the time insurance) involving, at the time plan and not subject to any other with respect to which the reserve is with respect to which the reserve is use. computed, life, health, or accident computed, life, health, or accident contingencies. Such life insurance contingencies. Such life insurance reserves, except in the case of pol- reserves, except in the case of policies covering life, health, and ac-icies covering life, health, and accident insurance combined in one cident insurance combined in one policy issued on the weekly pre- policy issued on the weekly premium payment plan, continuing for mium payment plan, continuing for life and not subject to cancellation life and not subject to cancellation and except as hereinafter provided and except as hereinafter provided in the case of assessment life in- in the case of assessment life insurance, must also be required by surance, must also be required by law. In the case of an assessment law. In the case of an assessment life insurance company or associa- life insurance company or association the term "life insurance re- tion the term "life insurance reserves" includes sums actually serves" includes sums actually deposited by such company or as-deposited by such company or as Sec. 202. (a) (1) In general.- Sec. 202. (a) (1) In general.— In the case of a life insurance com- In the case of a life insurance company the term "gross income" pany the term "gross income" means the gross amount of income means the gross amount of income received during the taxable year received during the taxable year from interest, dividends, and rents. from interest, dividends, and rents. Sec. 202. (a) (2) Cross refer ence. For inclusion in computation of tax of amount specified in shareholder's consent, see section 28. Sec. 202. (a) (2) Cross refer ence. 66 For inclusion in computation of tax of amount specified in shareholder's consent, see section 28. Sec. 202. (b) Reserve funds reSec. 202. (b) Reserve funds required by law defined. The term quired by law defined. The term "reserve funds required by law" reserve funds required by law" includes, in the case of assessment includes, in the case of assessment insurance, sums actually deposited insurance, sums actually deposited by any company or association by any company or association with State or Territorial officers with State or Territorial officers pursuant to law as guaranty or re- pursuant to law as guaranty or reserve funds, and any funds main- serve funds, and any funds maintained under the charter or articles tained under the charter or articles of incorporation of the company or of incorporation of the company or association exclusively for the association exclusively for the payment of claims arising under cer- ment of claims arising under certificates of membership or pol- tificates of membership or policies issued upon the assessment icies issued upon the assessment plan and not subject to any other plan and not subject to any other use. pay use. Sec. 202. Gross income of life insurance companies. See p. 302, Eighth Edition. |