74Th CONGRESS . SESS. II. CH. 690 . JU NE 22, 1936.
17 13 Convention of Insurance Commissioners, and shall be computed as follows To all e xpense s paid durin g the taxabl e year add e xpense s unpaid at the end of the taxab le year and deduct expenses un paid at the end of the preceding taxable year . For the purpose of compu ting t he net incom e subj ect to the tax imposed by this section there shall be deducted from expenses incurred as defined in this paragraph all ex penses incurred which are not allowed as deductions by subsection (c) of this section . (c) DEDUCTIONS ALLOWED.-I n c omp uti ng t he net in come of an Net income, deduc- insurance company subjec t to the tax imposed by this s ection there tions allowed . shal l be allowe d as d educti ons (1) All o rdina ry and neces sary e xpens es inc urred, as p rovide d Business expenses . in section 23 (a) ;
Ante, p . 1658. (2) All interest as provided in section 23 (b) ;
Interest . (3) Taxes as provided in section 23 (c)
Taxes . (4 Losses incurred as defined in subsection (b) (6) of this Los ses . section ; (5) Subject to the limitation contained in section 117 (d), limtat on,from sales ; sales ; losses sustained during the taxable year from the sale or other An te, p.1692. disposition of property ; (6) Bad debts in the nature of agency balances and bills receiv- Bad deb ts, etc . able ascertained to be worthless and charged off within the taxable year ; (7) The amount of in terest earne d duri ng the taxab le yea r Exempt which under section 22 (b) (4) is excluded from gross income ; (8) A reasonable allowance for the exhaustion, wear and tear Exhaustion, etc ., of of roperty, as provided in section 23 (1)
property .
Charitable, and so forth, contributions, as provided in Charitable, etc ., con- tributions . section 23 (q) ;
An te, p. 1661 . ( 10 Deductions ( other than those s p ecified in this subsection ) Other deductions . a s provided in section 23, but not in excess of the amount of the An te, p. 1658 . gross income included un der subsection (b) (1) (C) of th is section . (d) DEDUCTIONS OF FO RE IGN CORPORATIONS .-In the case of a De duc tion s al- lowed foreign corpora- foreign corporation the deductions allowed in this section shall be tions f or Unit ed Stat es allowed to the extent provided in Supplement I in the case of a bn Pst, p . 1717. foreign corporati on engaged in trade or busines s within the United States or having an office or place of business therein . (e) DOUBLE DEDUCTIONS .-Nothing in this section shall be con- Duplication prohib- it ed . strued to permit the same item to be twice deducted . SEC . 205. TA XES OF FORE IGN CO UNTR IES AND PO SSES SIO NS OF Foreign taxes . UNITED STATES . The amount of income, war -pr ofi ts, and ex ces s-pr ofi ts tax es Credit for, allowed dome sti c in suran ce imposed by foreign countries or possessions of the United States companies. 17 10, 171 1, shall be allowed as a credit against the tax of a domestic insurance 1696 . company subject to the tax imposed by section 201 or 204, to the extent provided in the case of a domestic corporation in section 131, and in such cases "net income" as used in that section means the net "Net income" con- stru ed . in come a s defi ned in this Suppl ement . SEC. 206. COMPUTATION OF GROSS INCOME . The gross income of insurance companies subject to the tax imposed by section 201 or 204 shall not be determined in the manner provided in section 119 . SEC. 207. MUTUAL INSURANCE COMPANIES OTHER THAN LIFE . (a) APPLICATION of T rr L E .-Mutual insurance comp anies, other than life insurance companies, shall be taxable in the same manner 104019 •-36 108 Orcss income . Computation . Ante, p. 1693 . Mutual insurance companies oth er th an life . Taxable as other cor. porat ions .
