Tax Formula for Life Insurance Companies...: Hearing... on H.R. 7201...1955 - 76 pages |
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85 percent adjustment allocable to non-life annuity contracts applicable assume basic Chairman computed Congress conservatism deduction allowed dividends earnings effect figure free interest free investment income gross investment income GUERTIN HARRY FLOOD BYRD HOGG individual company insurance business insurance companies insurance taxable income interest rate investment income allocable JERE COOPER July 25 LAURENS WILLIAMS life-insurance business life-insurance companies life-insurance industry LUCAS Means Committee mortuary or relief mutual companies Mutual Life Insurance net investment income non-life insurance reserves operating panies paragraph pension trust business percentage policy liability deduction policyholders premiums proposed formula question rate of interest represent required interest deduction revenue SCHMUCK Secretary section 805 Senate Finance Committee Senator BARKLEY Senator CARLSON Senator FLANDERS Senator KERR SLITOR smaller companies special interest deduction statement subpart substantial tax formula tax law taxation of life-insurance term life insurance thereof tion Treasury Department W. T. Grant WILLIAMS
Popular passages
Page 7 - interest paid' means— "(1) all interest paid or accrued within the taxable year on indebtedness, except on indebtedness incurred or continued to purchase or carry obligations (other than obligations of the United States issued after September 24, 1917,
Page 5 - (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 "(2) The gross income from any trade or business (other than an insurance business) carried on by the life insurance company, or by a partnership of
Page 9 - (A) any item, to the extent attributable to the carrying on of the insurance business, shall not be taken into account, and "(B) the deduction for net operating losses provided in section 172 shall not be allowed. "(9) DEPLETION.—The deduction allowed by section 611 (relating to depletion).
Page 6 - (iii) 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) of property used in the trade or business (as so defined). "(B) Any item, to the extent attributable to the carrying on of the insurance business, shall not be taken into account.
Page 7 - originally subscribed for by the taxpayer) the interest on which is wholly exempt from taxation under this chapter; and "Subpart B—1942 Formula "Sec. 811. Tax imposed. "Sec. 812. Reserve and other policy liability deduction. •"Sec. 813. Adjustment for certain reserves. "SEC. 811. TAX IMPOSED.
Page 4 - COMPANIES.—A burial or funeral benefit insurance company engaged directly in the manufacture of funeral supplies or the performance of funeral services shall not be taxable under this part but shall be taxable under section 821 or section 831. "SEC. 802. TAX IMPOSED FOR 1955. "(a) TAX
Page 7 - the same item shall be counted only once. For purposes of this section (other than paragraph (4) of this subsection), the amount of any reserve (or portion thereof) for any taxable year shall be the mean of such reserve (or portion thereof) at the beginning and end of the
Page 4 - purposes of this subsection, subsection (a), and subsection (c), the amount of any reserve (or portion thereof) for any taxable year shall be the mean of such reserve (or portion thereof) at the beginning and end of the taxable year. "(1) life insurance reserves, "(2) unearned premiums and unpaid losses not included in life insurance reserves, and "(3) all other insurance reserves
Page 6 - (1) in accordance with the method regularly employed by such company, if such method is reasonable, and "(2) in all other cases in accordance with regulations prescribed by the Secretary or his delegate. "SEC. 804. RESERVE AND OTHER POLICY LIABILITY DEDUCTION. "(a) GENERAL
Page 8 - from operations after dividends to policyholders shall be computed in the manner required for purposes of the annual statement approved by the National Convention of Insurance Commissioners, except that no reduction shall be made for any Federal income tax. " (2) for purposes of subpart B, the life insurance company taxable income shall not exceed the amount of the net gain from operations after dividends to policyholder-!.