Reg. § 1.818-8 Special rules relating to consolidated returns and certain capital losses.
Section provides that, in the case of a life insurance company filing or required to file a consolidated return under section for a taxable year, the computations of the policyholders' share of investment yield under subparts B and C, part I, subchapter L, chapter 1 of the Code (including all determinations and computations incident thereto) shall be made as if such company were not filing a consolidated return. Thus, for example, if X and Y are life insurance companies which are entitled to file a consolidated return for 1975 and X has paid dividends to Y during such taxable year, Y must include such dividends in the computation of gross investment income under section . For other rules relating to the filing of consolidated returns, see sections through and the regulations thereunder.
[T.D. 7469, 42 FR 12181, Mar. 3, 1977]