Other nondeductible items
(i) In general
(i)In general#
The earnings and profits of a regulated investment company for any taxable year (but not its accumulated earnings and profits) shall not be reduced by any amount which is not allowable as a deduction (other than by reason of section 265 or 171(a)(2)) in computing its taxable income for such taxable year.
(ii)Coordination with treatment of net capital losses#
Clause (i) shall not apply to a net capital loss to which subparagraph (A) applies.