(1) entered into with trusts which (as of the time the contracts were entered into) were deemed to be trusts described in and exempt from tax under (or trusts exempt from tax under section 165 of the Internal Revenue Code of 1939 or the corresponding provisions of prior revenue laws);
(2) entered into under plans which (as of the time the contracts were entered into) were deemed to be plans described in , or plans meeting the requirements of paragraphs (3), (4), (5), and (6) of of the Internal Revenue Code of 1939;
(3) provided for employees of the life insurance company under a plan which, for the taxable year, meets the requirements of paragraphs (3), (4), (5), (6), (7), (8), (11), (12), (13), (14), (15), (16), (17), (19), (20), (22), (26), and (27) of ;
(4) purchased to provide retirement annuities for its employees by an organization which (as of the time the contracts were purchased) was an organization described in which was exempt from tax under (or was an organization exempt from tax under of the Internal Revenue Code of 1939 or the corresponding provisions of prior revenue laws), or purchased to provide retirement annuities for employees described in by an employer which is a State, a political subdivision of a State, or an agency or instrumentality of any one or more of the foregoing;
(5) entered into with trusts which (at the time the contracts were entered into) were individual retirement accounts described in or under contracts entered into with individual retirement annuities described in ; or
(6) purchased by—
purchased by—
(A) a governmental plan (within the meaning of ) or an eligible deferred compensation plan (within the meaning of ), or
(B) the Government of the United States, the government of any State or political subdivision thereof, or by any agency or instrumentality of the foregoing, or any organization (other than a governmental unit) exempt from tax under this subtitle, for use in satisfying an obligation of such government, political subdivision, agency or instrumentality, or organization to provide a benefit under a plan described in subparagraph (A).
(1) in applying section 1231(a), the term “property used in the trade or business” shall be treated as including only—
in applying section 1231(a), the term “property used in the trade or business” shall be treated as including only—
(A) property used in carrying on an insurance business, of a character which is subject to the allowance for depreciation provided in section 167, held for more than 1 year, and real property used in carrying on an insurance business, held for more than 1 year, which is not described in , (B), or (C), and
(B) property described in , and
(2) in applying , the reference to property used in trade or business shall be treated as including only property used in carrying on an insurance business.
(1) Property held on
In the case of property held by the taxpayer on
(A) the fair market value of such property on such date exceeds the adjusted basis for determining gain as of such date, and
(B) the taxpayer has been a life insurance company at all times on and after
the gain on the sale or other disposition of such property shall be treated as an amount (not less than zero) equal to the amount by which the gain (determined without regard to this subsection) exceeds the difference between the fair market value on
(2) Certain property acquired after
In the case of property acquired after
(A) for purposes of paragraph (1), such property shall be deemed held continuously by the taxpayer since the beginning of the holding period thereof, determined with reference to section 1223,
(B) the fair market value and adjusted basis referred to in paragraph (1) shall be that of that property for which the holding period taken into account includes
(C) paragraph (1) shall apply only if the property or properties the holding periods of which are taken into account were held only by life insurance companies after
(D) the difference between the fair market value and adjusted basis referred to in paragraph (1) shall be reduced (to not less than zero) by the excess of (i) the gain that would have been recognized but for this subsection on all prior sales or dispositions after
(E) the basis of such property shall be determined as if the gain which would have been recognized but for this subsection were recognized gain.
(3) Property defined
For purposes of paragraphs (1) and (2), the term “property” does not include insurance and annuity contracts and property described in paragraph (1) of .
For purposes of this part, the term “insurance or annuity contract” includes any contract supplementary thereto.
(1) Items of companies other than life insurance companies
If an election under is in effect with respect to an affiliated group for the taxable year, all items of the members of such group which are not life insurance companies shall not be taken into account in determining the amount of the tentative LICTI of members of such group which are life insurance companies.
(2) Dividends within group
In the case of a life insurance company filing or required to file a consolidated return under section 1501 with respect to any affiliated group for any taxable year, any determination under this part with respect to any dividend paid by one member of such group to another member of such group shall be made as if such group was not filing a consolidated return.
(1) In general
Under regulations, in applying sections 861, 862, and 863 to a life insurance company, the deduction for policyholder dividends (determined under ), reserve adjustments under subsections (a) and (b) of section 807, and death benefits and other amounts described in shall be treated as items which cannot definitely be allocated to an item or class of gross income.
(2) Election of alternative allocation
(A) In general
On or before
(B) Election irrevocable
Any election under subparagraph (A), once made, may be revoked only with the consent of the Secretary.
(3) Items described in section 807(c) treated as not interest for source rules, etc.
For purposes of part I of subchapter N, items described in any paragraph of shall be treated as amounts which are not interest.
(1) In general
Any reference to a life insurance contract shall be treated as including a reference to a qualified accelerated death benefit rider on such contract.
(2) Qualified accelerated death benefit riders
For purposes of this subsection, the term “qualified accelerated death benefit rider” means any rider on a life insurance contract if the only payments under the rider are payments meeting the requirements of .
(3) Exception for long-term care riders
Paragraph (1) shall not apply to any rider which is treated as a long-term care insurance contract under section 7702B.