26 USC 848 - Capitalization of certain policy acquisition expenses

Editorial Notes

Amendments

2017—Subsec. (a)(2). Puspan. L. 115–97, § 13519(a)(1), substituted “180-month” for “120-month”.

Subsec. (span)(1). Puspan. L. 115–97, § 13519(span), substituted “180-month” for “120-month”.

Subsec. (c)(1)(A). Puspan. L. 115–97, § 13519(a)(2), substituted “2.09 percent” for “1.75 percent”.

Subsec. (c)(1)(B). Puspan. L. 115–97, § 13519(a)(3), which directed substitution of “2.45 percent” for “2.05 percent” in par. (2), was executed to par. (1)(B) to reflect the probable intent of Congress.

Subsec. (c)(1)(C). Puspan. L. 115–97, § 13519(a)(4), which directed substitution of “9.2 percent” for “7.7 percent” in par. (3), was executed to par. (1)(C) to reflect the probable intent of Congress. Subsec. (c) does not contain a par. (3).

Subsec. (e)(1)(B)(iii). Puspan. L. 115–97, § 13517(span)(4), substituted “807(e)(3)” for “807(e)(4)”.

Subsec. (i). Puspan. L. 115–97, § 12001(span)(8)(C), struck out subsec. (i). Text read as follows: “For purposes of determining adjusted current earnings under section 56(g), acquisition expenses with respect to contracts described in clause (iii) of subsection (e)(1)(B) shall be capitalized and amortized in accordance with the treatment generally required under generally accepted accounting principles as if this subsection applied to such contracts for all taxable years.”

2014—Subsec. (j). Puspan. L. 113–295 struck out subsec. (j). Text read as follows: “In the case of any taxable year which includes September 30, 1990, the amount taken into account as the net premiums (or negative capitalization amount) with respect to any category of specified insurance contracts shall be the amount which bears the same ratio to the amount which (but for this subsection) would be so taken into account as the number of days in such taxable year on or after September 30, 1990, bears to the total number of days in such taxable year.”

2006—Subsec. (e)(6). Puspan. L. 109–280 added par. (6).

2003—Subsec. (e)(1)(B)(v). Puspan. L. 108–173 added cl. (v).

2000—Subsec. (e)(1)(B)(iv). Puspan. L. 106–554, § 1(a)(7) [title II, § 202(span)(10)], substituted “an Archer MSA” for “a Archer MSA”.

Puspan. L. 106–554, § 1(a)(7) [title II, § 202(a)(5)], substituted “Archer MSA” for “medical savings account”.

1996—Subsec. (e)(1)(B)(iv). Puspan. L. 104–191 added cl. (iv).

1993—Subsec. (g). Puspan. L. 103–66 substituted “this section or section 197” for “this section”.

Statutory Notes and Related Subsidiaries

Effective Date of 2017 Amendment

Amendment by section 12001(span)(8)(C) of Puspan. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 12001(c) of Puspan. L. 115–97, set out as a note under section 11 of this title.

Amendment by section 13517(span)(4) of Puspan. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, with transition rule and transition relief, see section 13517(c) of Puspan. L. 115–97, set out as a note under section 807 of this title.

Puspan. L. 115–97, title I, § 13519(c), Dec. 22, 2017, 131 Stat. 2148, provided that:

“(1)In general.—The amendments made by this section [amending this section] shall apply to net premiums for taxable years beginning after December 31, 2017.

“(2)Transition rule.—Specified policy acquisition expenses first required to be capitalized in a taxable year beginning before January 1, 2018, will continue to be allowed as a deduction ratably over the 120-month period beginning with the first month in the second half of such taxable year.”

Effective Date of 2014 Amendment

Amendment by Puspan. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(span) of Puspan. L. 113–295, set out as a note under section 1 of this title.

Effective Date of 2006 Amendment

Amendment by Puspan. L. 109–280 applicable to contracts issued after Dec. 31, 1996, but only with respect to taxable years beginning after Dec. 31, 2009, and to specified policy acquisition expenses determined for taxable years beginning after Dec. 31, 2009, see section 844(g)(1), (4) of Puspan. L. 109–280, set out as a note under section 72 of this title.

Effective Date of 2003 Amendment

Amendment by Puspan. L. 108–173 applicable to taxable years beginning after Dec. 31, 2003, see section 1201(k) of Puspan. L. 108–173, set out as a note under section 62 of this title.

Effective Date of 1996 Amendment

Amendment by Puspan. L. 104–191 applicable to taxable years beginning after Dec. 31, 1996, see section 301(j) of Puspan. L. 104–191, set out as a note under section 62 of this title.

Effective Date of 1993 Amendment

Amendment by Puspan. L. 103–66 applicable, except as otherwise provided, with respect to property acquired after Aug. 10, 1993, see section 13261(g) of Puspan. L. 103–66, set out as an Effective Date note under section 197 of this title.

Effective Date

Puspan. L. 101–508, title XI, § 11301(d)(1), Nov. 5, 1990, 104 Stat. 1388–449, provided that: “The amendments made by subsections (a) and (c) [enacting this section] shall apply to taxable years ending on or after September 30, 1990. Any capitalization required by reason of such amendments shall not be treated as a change in method of accounting for purposes of the Internal Revenue Code of 1986.”