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TITLE 26-INTERNAL REVENUE CODE (25) Deficiency dividend of real estate investment trust If the acquiring corporation pays a deficien- cy dividend (as defined in section 859(d)) with respect to the distributor or transferor corpo- ration, such distributor or transferor corpora- tion shall, with respect to such payments, be entitled to the deficiency dividend deduction provided in section 859. (d) Operations loss carrybacks and carryovers of life insurance companies For application of this part to operations loss carry. backs and carryovers of life Insurance companies, see section 812(f). (Aug. 16, 1954, ch. 736, 68A Stat. 124; June 15, 1955, ch. 143, § 2(1), 69 Stat. 134; Jan. 28, 1956, ch. 15, § 1, 70 Stat. 7; Sept. 2, 1958, Pub. L. 85- 866, title I, § 29(c), 72 Stat. 1628; June 25, 1959, Pub. L. 86-69, § 3(c), 73 Stat. 139; Oct. 16, 1962, Pub. L. 87-834, § 2(d), 76 Stat. 971; Feb. 26, 1964, Pub. L. 88-272, title II, §§ 209(d)(2), 225(i)(3), 78 Stat. 46, 92; Jan. 2, 1968, Pub. L. 90-240, § 5(d), 81 Stat. 778; Dec. 30, 1969, Pub. L. 91-172, title V, §§ 504(c)(2), 512(c), 521(f), 83 Stat. 633, 639, 654; Dec. 10, 1971, Pub. L. 92-178, title VI, § 601(c)(3), 85 Stat. 557; Oct. 4, 1976, Pub. L. 94-455, title XVI, § 1601(e), title XIX, §§ 1901(a)(54), (b)(16), (17), (21)(B), (33)(N), 1906(b)(13)(A), 90 Stat. 1746, 1773, 1796, 1797, 1802, 1834.) AMENDMENTS 1976-Subsec. (b)(2). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". Subsec. (c)(3). Pub. L. 94-455, § 1901(b)(33)(N), sub- stituted in subpars. (B) and (C) "capital gain net income" for "net capital gain". Subsecs. (c)(4), (5). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". Subsec. (c)(10). Pub. L. 94-455, § 1901(b)(21(B), among other changes, substituted reference to section 616 (relating to certain development expenditures) if the distributor or transferor corporation has so elect- ed for reference to sections 615 and 616 (relating to pre-1970 exploration expenditures and development expenditures, respectively) if the distributor or tran- feror corporation has so elected and struck out provi- sions that if, for any taxable year, the distributor of transferor corporation was allowed or made the elec- tion of the deduction under section 615 of this title, the acquiring corporation shall be deemed to have been allowed or to have made such election of the de- duction under section 615 of this title. Subsec. (c)(15). Pub. L. 94-455, § 1901(b)(17), substi- tuted "subsection (c)" for "subsections (b)(7) and (c)". Subsec. (c)(20). Pub. L. 94-455, § 1901(a)(54), struck out subsec. (c)(20), which related to carry-over of unused pension trust deductions in certain cases. Subsec. (c)(21). Pub. L. 94-455, § 1901(b)(16). struck out subsec. (c)(21), which related to pre-1954 adjust- ments resulting from change in method of accounting. Subsecs. (c)(22), 23. Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". Subsec. (c)(24). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". Subsec. (c)(25). Pub. L. 94-455, § 1601(e), added subsec. (c)(25). 1971-Subsec. (c)(24). Pub. L. 92-178 added par. (24). 1969-Subsec. (b)(3). Pub. L. 91-172, § 512(c), substi- tuted "a net operating loss or a net capital loss" for "a net operating loss". Subsec. (c)(6). Pub. L. 91-172, § 521(f), substituted "subsections (b), (j) and (k) of section 167" for "para- graphs (2), (3) and (4) of section 167(b)" and added reference to adjusted basis in the hand of the distribu- tor or tranferor corporation. Subsec. (c)(10). Pub. L. 91-172, § 504(c)(2), substitut- ed "Treatment of certain mining exploration and de- velopment expenses of distributor or transferor corpo- ration" for "Treatment of certain expenses deferred by the election of distributor or transferor corpora- tion" in the par. catchline, limited deduction of ex- penses deferred under sections 615 and 616 of this title by the acquiring corporation as if it were the distribu- tor or transferor corporation to pre-1970 exploration and development expenditures, and added provision that if distributor or transferor corporation, for any taxable year, was allowed the deduction in sections 615(a) or 617(a) of this title or made the election pro- vided in section 615(b) of this title, acquiring corpora- tion shall be deemed to have been allowed such deduc- tion or deductions or to have made such election, as the case may be, for the purpose of applying the limi- tation provided in section 617 of this title. 1968-Subsec. (c)(22). Pub, L. 90-240 substituted suc- cessor insurance companies for successor life insur- ance companies as the business enterprise covered, substituted reference to insurance companies taxable under subchapter L for reference to life insurance companies as defined in section 801(a), and substituted reference to the purposes of this section and of sub- chapter L for reference to the purposes of this section and part I of subchapter L. 1964-Subsec. (c)(15). Pub. L. 88-272, § 225(I)(3), sub. stituted "subsections (b)(7) and (c) of section 545, re- lating to deductions with respect to payment of cer- tain indebtedness" for "section 545(b)(7). relating to a deduction for payment of certain indebtedness in- curred before Jan. 1, 1934". Subsec. (c)(19). Pub. L. 88-272, § 209(d)(2), permitted deductions for contributions made in the taxable year and in 4 prior taxable years, instead of one prior tax- able year, and provided that each taxable year begin- ning on or before the distribution or transfer date shall be treated as a prior taxable year with reference to the acquiring corporation's taxable years beginning after such date. 1962-Subsec. (c)(23). Pub. L. 87-834 added subsec. (c)(23). 1959-Subsec. (c)(22). Pub. L. 86-69, §3(c)(1), added subsec. (c)(22). Subsec. (d). Pub. L. 86-69, § 3(c)(2), added subsec. (d). 1958-Subsec. (c)(21). Pub. L. 85-866 added subsec. (c)(21). 1956-Subsec. (c), (20). Act Jan. 28, 1956 added subsec. (c)(20). 1955-Subsec. (c), (7). Act June 15, 1955, repealed subsec. (c)(7), which related to carryover of prepaid income. EFFECTIVE DATE OF 1976 AMENDMENT Amendment of Subsecs. (c)(3), (10), (15), (20), (21) by section 1901(a)(54), (b)(16), (17), (21)(B), (33)(N) of Pub. L. 94-455 effective for taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94- 455, set out as an Effective Date of 1976 Amendment note under section 2 of this title. For effective date of amendment of subsec. (c)(25) by section 1601(e) of Pub. L. 94-455, see section 1608(a) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 859 of this title. EFFECTIVE DATE OF 1971 AMENDMENT Enactment of subsec. (c)(24) of this section by Pub. L. 92-178 applicable to taxable years beginning after Dec. 31, 1971, see section 601(f) of Pub. L. 92-178, set out as an Effective Date note under section 50A of this title. EFFECTIVE DATE OF 1969 AMENDMENT Amendment of subsec. (b)(3) by section 512(c) of Pub. L. 91-172 applicable with respect to net capital losses sustained in taxable years beginning after Dec. 31, 1969, see section 512(g) of Pub. L. 91-172, set out as an Effective Date of 1969 Amendment note under sec- tion 1212 of this title. 71-999 0 - 78 - 20 (Vol. 7) Page 277