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TITLE 26-INTERNAL REVENUE CODE EFFECTIVE DATE OF 1976 AMENDMENT Amendment of subsecs. (b)(1), (3) by section 806(d)(1) (A), (B) of Pub. L. 94-455 applicable to losses incurred in taxable years ending after Dec. 31, 1975, see section 806(g)(1) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 172 of this title. Amendment of subsec. (b)(1) by section 1901(a)(99) 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. EFFECTIVE DATE OF 1964 AMENDMENT Section l(b) of Pub. L. 88-571 provided that: "The amendment made by subsection (a) [to subsec. (e) of this section] shall apply to a loss frum oper- ations for taxable years beginning after December 31, 1955; except that, in the case of a nonqualified corpo- ration as defined in section 812(e)(2)(B) of the Inter- nal Revenue Code of 1954 (subsec. (e)(2)(B) of this section] as in effect before such amendment- "(1) a loss from operations for a taxable year begin- ning in 1956 shall not be an operating loss carryover to the years 1962 and 1963, and there shall be no reduc- tion in the portion of such loss from operations which may be carried to 1964 by reason of an offset with re- spect to the year 1962 or 1963, and "(2) a loss from operations for a taxable year begin- ning in 1957 shall not be an operating loss carryover to the year 1963, and there shall be no reduction in the portion of such loss from operations which may be carried to 1964 and 1965 by reason of an offset with re- spect to the year 1963." EFFECTIVE DATE OF 1962 AMENDMENT Section 3(d)(2) of Pub. L. 87-858 provided that: "The amendment made by paragraph (1) (to subscc. (c)(2)(B) of this section] shall apply with respect to all taxable years beginning after December 31, 1954, except that in the case of a nonquallfted corporation, as defined in section 812(e)(2)(B) of the Internal Rev- enue Code of 1954 [subsec. (e)(2)(B) of this section] as in effect prior to the amendment made by paragraph (1), a loss from operations for a taxable year beginning in 1955 shall not be an operations loss carryover to the year 1961, and there shall be no reduction In the por- tion of such loss from operations which may be carried to 1962 or 1963 by reason of an offset with respect to the year 1961." EFFECTIVE DATE Section applicable only with respect to taxable years beginning after Dec. 31, 1957, see section 4 of Pub. L. 86-69, set out as an Effective Date note under section 801 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 809, 844. 1351, 6501, 6511. 6601, 6611 of this title. SUBPART D-DIsTRIBUTIONS TO SHAREHOLDERS Sec. 815. Distributions to shareholders § 815. l)istributions to shareholders (a) General rule For purposes of this section and section 802(b)(3), any distribution to shareholders after December 31, 1958, shall be treated as made- (1) first out of the shareholders surplus ac- count, to the extent thereof, (2) then out of the policyholders surplus ac- count, to the extent thereof, and (3) finally out of other accounts. (W) Shareholders surplus account (1) In general Each stock life insurance company shall, for purposes of this part, establish and maintain a shareholders surplus account. The amount in such account on January 1, 1958, shall be zero. (2) Additions to account The amount added to the shareholders sur- plus account for any taxable year beginning after December 31, 1957, shall be the amount by which- (A) the sum of- (I) the life insurance company taxable Income (computed without regard to sec- tion 802(b)(3)), (ii) in the case of a taxable year begin- ning after December 31, 1958, the amount (if any) of the net capital gain, reduced (in the case of a taxable year beginning after December 31, 1961) by the amount referred to in clause (I), (iii) the deductions for dividends re- ceived provided by sections 243, 244, and 245 (as modified by section 809(d)(8)(B)), and the amount of interest excluded from gross income under section 103, and (Iv) the small business deduction pro- vided by section 809(d)(10), exceeds (B) the taxes imposed for the taxable year by section 802(a), determined without regard to section 802(b)(3). (3) Subtractions from account (A) In general There shall be subtracted from the share- holders surplus account for any taxable year the amount which is treated under this section as distributed out of such account. (B) Distributions in 1958 There shall be subtracted from the share- holders surplus account (to the extent thereof) for any taxable year beginning in 1958 the amount of distributions to share- holders made during 1958. (c) Policyholders surplus account (1) In general Each stock life insurance company shall, for purposes of this part, establish and maintain a policyholders surplus account. The amount in such account on January 1, 1959, shall be zero. (2) Additions to account The amount added to the policyholders sur- plus account for any taxable year beginning after December 31, 1958, shall be the sum of- (A) an amount equal to 50 percent of the amount by which the gain from operations exceeds the taxable investment income, (B) the deduction for certain nonpartici- pating contracts provided by section 809(d)(5) (as limited by section 809(f)), and (C) the deduction for accident and health insurance and group life insurance con- tracts provided by section 809(d)(6) (as limited by section 809(f)). Page 509 § 815