73d C ONGRESS . SESS . II. CH. 277 . MAY 10, 1934.
733 TAX . Unite d States issued afte r September 24, 1917, and originally I NSURANCE subscribed for by the taxpayer) the interest up on which is wholly COMPANIES- exem pt from taxation under t his titl e . Contd. (b) RENTAL VALrE OF RE AL ESTATE .-The deduction under sub- ~Re«tal value of real se ction (a ) (6) or (7) of this sec tion on account of any r eal esta te Deduction of propor- tionate part of depre- own ed and occ upi ed in whole or in pa rt by a li fe insurance c om- elation, etc., expenses . pany, shall be limited to an amount which bears the same ratio to such deduction (computed without regard to this subsection) as Determination of. the rental value of the space not so occupied bears to the rental value of the entire property . (c) FOREIGN LIFE INSURANCE COMPANIES .-In the case of a for- Foreign life insur- ance companies . eign l ife i nsura nce co mpany the a mount of its net income for any Net income on busi. taxable year from sources within the United States shall be the sess m United States . same proportion of its net income for the taxable year from sources within and wi thou t the Un ited Sta tes, whi ch the r eser ve f unds required by law and held by it at the end of the taxable year upon business transacted within the United States is of the reserve funds held by it at the end of the taxable year upon all business transacted . SEC. 204. INSURANCE COMPANIES OTHER THAN LIFE OR MUTUAL . Insurance companies other than life or mu- t ual IMPOSITION OF TAX.-In lieu of the tax imposed by section 13 aximposed of this title, there shall be levied, collected, and paid for each taxable Ante, p. 686 year upon the net income of every insurance company (other than a life or mutual insurance company) a tax as follows : (1) In the case of suc h a domestic insurance company, 133 /4 Domestic companies . per centum of the amount of its net income in excess of the credit provided in subsection (f) of this section ; (2) In the case of such a foreign insurance company, 133/4 per Foreign companies . centum of the amoun t of its net income from sources with in the United States in excess of the credit provided in subsection (f) of this section . (b) DEFINITION OF INCOME , ETV .- -In the ca se of an insurance De finit ion of te rms . company subject to the tax imposed by this section- (1) GROSS IN C OM E ."Gross income " means the sum of (A) "Gro ss income ." the comb ined g ross amoun t earn ed du ring the ta xable year , from investment income and from underwriting income as provided in this subsection, computed on the basis of the under writi ng and investment exhibit of the annual statement approved by the National Conventio n of Insurance Commissioner s, and (B) gain during the taxable ye ar from the sale or other disposition of property, and (C) all other items constituting gross income under section 22 ; (2) NET INCOME.-" Net income " means the gross income as "Net income." defined in paragraph (1) of this subsection less the deductions allowed by subsection (c) of this section ; (3) I NVESTMEN T INCOM E .--"In vestm ent incom e" me ans the "Investment in- gross amount of income earned during the taxable year from come . interest, dividends, and rents, computed as follows To all interest, dividends and rents received during the taxable so- of- year , add in teres t, di vidend s and rent s due and accrued at the end of the taxable year, and deduct all interest, dividends and rents due and accrued at the end of the preceding taxable year ; "U nd erw rit ing in- come." (4) UNDERWRITING INCOME ." Underwriting income " means the premiums earned on insurance contracts during the taxable year less losses incurred and expenses incurred ; (5) PR EMI UMS EARNED." Premiums earned on insurance con- Premiums earned . tra cts duri ng the t axab le y ear" mea ns an am ount com pute d as follows
