Reg. § 1.246-1 Deductions not allowed for dividends from certain corporations.
The deductions provided in sections (relating to dividends received by corporations), 244 (relating to dividends received on certain preferred stock), and 245 (relating to dividends received from certain foreign corporations), are not allowable with respect to any dividend received from:
(a) A corporation organized under the China Trade Act, 1922 (15 U.S.C. ch. 4) (see section 941); or
(b) A corporation which is exempt from tax under section (relating to certain charitable, etc., organizations) or section (relating to farmers' cooperative associations) for the taxable year of the corporation in which the distribution is made or for its next preceding taxable year; for
(c) A corporation to which section (relating to income from sources within possessions of the United States) applies for the taxable year of the corporation in which the distribution is made or for its next preceding taxable year; or
(d) A real estate investment trust which, for its taxable year in which the distribution is made, is taxable under Part II, Subchapter M, Chapter 1 of the Code. See section , , section , and .
[T.D. 6500, 25 FR 11402, Nov. 26, 1960, as amended by T.D. 6598, 27 FR 4092, Apr. 28, 1962; T.D. 7767, 46 FR 11264, Feb. 6, 1981]