Tax Formula for Life Insurance Companies: Hearing Before the Committee on Finance, United States Senate, Eighty-fourth Congress, First Session, on H. R. 7201, an Act Relating to the Taxation of Income of Insurance Companies. July 25, 1955

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U.S. Government Printing Office, 1955 - 76 pages
 

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Page 4 - •• "(2) General rule. If, during the taxable year, the recognized gains upon sales or exchanges of property used in the trade or business, plus the recognized gains from the compulsory or involuntary conversion (as a result of destruction in whole or in part, theft or seizure, or an exercise of the power of requisition or condemnation or the threat or imminence thereof...
Page 10 - ... shall be made on the basis of the income, disbursements, assets, and liabilities reported in the annual statement for the taxable year of the United States business of such company on the form approved for life insurance companies by the National Association of Insurance Commissioners.
Page 6 - For purposes of this part, the term "pension plan reserves" means that portion of the life Insurance reserves which is allocable to contracts — (A) purchased under contracts entered into with trusts which (as of the time the contracts were entered into) were deemed to be...
Page 1 - For purposes of this subtitle, the term "life insurance company" means an insurance company which is engaged in the business of issuing life insurance and annuity contracts (either separately or combined with health and accident insurance), or noncancellable contracts of health and accident insurance, if— (1) Its life insurance reserves (as defined in subsection (b) ) , plus...
Page 11 - Any amount paid out for new buildings or for permanent improvements or betterments made to increase the value of any property or estate ; 3.
Page 10 - ... effect for 1957) shall not apply with respect to any amount required to be taken into account by such paragraph, and (B) The amount of the deduction allowed by section 805 (as in effect for 1957) shall not be reduced by reason of any amount required to be taken into account by such paragraph. (f ) Denial of double deductions. Nothing in this part shall permit the same item to be deducted more than once under subpart B and once under subpart C. [Sec.
Page 7 - life insurance reserves" means amounts which are computed or estimated on the basis of recognized mortality or morbidity tables and assumed rates of Interest, and which are set aside to mature or liquidate, either by payment or reinsurance, future unaccrued claims arising from life Insurance, annuity, and noncancellable health and accident Insurance contracts (including life Insurance or annuity contracts combined with noncancellable health and accident insurance) involving, at the time with respect...
Page 6 - ... (b) Amount of deduction — (1) In general. Except as limited by section 809(f), the deduction for dividends to policyholders for any taxable year shall be an amount equal to the dividends to policyholders paid during the taxable year — (A) Increased by the excess of (I) the amounts held at the end of the taxable year as reserves for dividends to policyholders (as defined In subsection (a...
Page 5 - For purposes of the preceding sentence, the term "dividends and similar distributions" includes amounts returned or credited to policyholders on cancellation or expiration of policies described in section 831(a) (3) (B). For purposes of this paragraph, the term "paid or declared...
Page 11 - Income" means the sum of the following: (1) Interest, etc. The gross amount of income from — (A) Interest, dividends, rents, and royalties, (B) the entering into of any lease, mortgage, or other instrument or agreement from which the life Insurance company derives interest, rents, or royalties, and (C) the alteration or termination of any Instrument or agreement described in subparagraph (B) . (2) Short-term capital gain.

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