U.S. Code » Title 26 » Subtitle Subtitle A— Income Taxes › Chapter CHAPTER 1— NORMAL TAXES AND SURTAXES › Subchapter Subchapter L— Insurance Companies › Part PART I— LIFE INSURANCE COMPANIES › Subpart Subpart D— Accounting, Allocation, and Foreign Provisions

26 U.S.C. § 812

Definition of company’s share and policyholder’s share

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(a) Company’s share

For purposes of section 805(a)(4), the term “company’s share” means, with respect to any taxable year beginning after December 31, 2017, 70 percent.

(b) Policyholder’s share

For purposes of section 807, the term “policyholder’s share” means, with respect to any taxable year beginning after December 31, 2017, 30 percent.

(Added Pub. L. 98–369, div. A, title II, § 211(a), July 18, 1984, 98 Stat. 741; amended Pub. L. 99–514, title XVIII, § 1821(i), Oct. 22, 1986, 100 Stat. 2840; Pub. L. 100–203, title X, § 10241(b)(2)(B), Dec. 22, 1987, 101 Stat. 1330–420; Pub. L. 100–647, title I, § 1018(h)(1), title II, § 2004(p)(2), Nov. 10, 1988, 102 Stat. 3583, 3608; Pub. L. 104–188, title I, § 1602(b)(2), Aug. 20, 1996, 110 Stat. 1833; Pub. L. 105–34, title X, § 1084(b)(3), Aug. 5, 1997, 111 Stat. 955; Pub. L. 108–218, title II, § 205(b)(4), Apr. 10, 2004, 118 Stat. 610; Pub. L. 113–295, div. A, title II, § 221(a)(41)(G), Dec. 19, 2014, 128 Stat. 4044; Pub. L. 115–97, title I, § 13518(a), Dec. 22, 2017, 131 Stat. 2148.)Editorial NotesCodification

Another section 1084(b) of Pub. L. 105–34 amended sections 101 and 264 of this title.

Prior Provisions

A prior section 812, added Pub. L. 86–69, § 2(a), June 25, 1959, 73 Stat. 127; amended Pub. L. 87–858, § 3(d)(1), Oct. 23, 1962, 76 Stat. 1137; Pub. L. 88–571, § 1(a), Sept. 2, 1964, 78 Stat. 857; Pub. L. 94–455, title VIII, § 806(d)(1), title XIX, § 1901(a)(99), Oct. 4, 1976, 90 Stat. 1598, 1781; Pub. L. 97–34, title II, § 207(b), Aug. 13, 1981, 95 Stat. 225, related to operations loss deductions, prior to the general revision of this part by Pub. L. 98–369, § 211(a).

Another prior section 812, act Aug. 16, 1954, ch. 736, § 812, as added Mar. 13, 1956, ch. 83, § 2, 70 Stat. 45, related to reserve and other policy liability deduction, prior to the general revision of this part by Pub. L. 86–69, § 2(a).

Amendments

2017—Pub. L. 115–97 amended section generally. Prior to amendment, section consisted of subsecs. (a) to (f), relating to definition of company’s share and policyholders’ share as pertaining to net and gross investment incomes.

2014—Subsec. (e)(2)(A). Pub. L. 113–295 struck out “, 244,” after “section 243”.

2004—Subsec. (b)(3)(A). Pub. L. 108–218 substituted “section 808” for “sections 808 and 809”.

1997—Subsec. (d)(1)(D). Pub. L. 105–34 added subpar. (D).

1996—Subsec. (g). Pub. L. 104–188 struck out subsec. (g) which read as follows: “Treatment of Interest Partially Tax-Exempt Under Section 133.—For purposes of this section and subsections (a) and (b) of section 807, the terms ‘gross investment income’ and ‘tax-exempt interest’ shall not include any interest received with respect to a securities acquisition loan (as defined in section 133(b)). Such interest shall not be included in life insurance gross income for purposes of subsection (b)(3).”

1988—Subsec. (b)(2). Pub. L. 100–647, § 2004(p)(2), substituted “In any case where neither the prevailing State assumed interest rate nor the applicable Federal interest rate is used, another appropriate rate shall be used for purposes of subparagraph (A).” for “In any case where the prevailing State assumed rate is not used, another appropriate rate shall be treated as the prevailing State assumed rate for purposes of subparagraph (A).”

Subsec. (e). Pub. L. 100–647, § 1018(h)(1), amended subsec. (e) generally. Prior to amendment, subsec. (e) read as follows: “For purposes of this section, the term ‘gross investment income’ shall not include any dividend received by the life insurance company which is a 100-percent dividend (as defined in section 805(a)(4)(C)). Such term also shall not include any dividend described in section 805(a)(4)(D) (relating to certain dividends in the case of foreign corporations).”

1987—Subsec. (b)(2). Pub. L. 100–203 substituted “at the greater of the prevailing State assumed rate or the applicable Federal interest rate” for “at the prevailing State assumed rate or, where such rate is not used, another appropriate rate” in subpar. (A), and inserted provision at end that in any case where the prevailing State assumed rate is not used, another appropriate rate be treated as the prevailing State assumed rate for purposes of subpar. (A).

1986—Subsec. (b)(2). Pub. L. 99–514, § 1821(i)(1), inserted “or, where such rate is not used, another appropriate rate” after “assumed rate”, in subpar. (A) and added subpar. (D).

Subsec. (b)(3)(B). Pub. L. 99–514, § 1821(i)(2), struck out “(including tax-exempt interest)” after “insurance gross income” in cl. (ii) and inserted at end “For purposes of subparagraph (B)(ii), life insurance gross income shall be determined by including tax-exempt interest and by applying section 807(a)(2)(B) as if it did not contain clause (i) thereof.”

Subsec. (c). Pub. L. 99–514, § 1821(i)(3), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “For purposes of this section, the term ‘net investment income’ means 90 percent of gross investment income.”

Subsec. (g). Pub. L. 99–514, § 1821(i)(4), added subsec. (g).

Statutory Notes and Related SubsidiariesEffective Date of 2017 Amendment

Pub. L. 115–97, title I, § 13518(c), Dec. 22, 2017, 131 Stat. 2148, provided that: “The amendments made by this section [amending this section and section 817A of this title] shall apply to taxable years beginning after December 31, 2017.”

Effective Date of 2014 Amendment

Amendment by Pub. L. 113–295 not applicable to preferred stock issued before Oct. 1, 1942 (determined in the same manner as under section 247 of this title as in effect before its repeal by Pub. L. 113–295), see section 221(a)(41)(K) of Pub. L. 113–295, set out as a note under section 172 of this title.

Except as otherwise provided in section 221(a) of Pub. L. 113–295, amendment by Pub. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title.

Effective Date of 2004 Amendment

Amendment by Pub. L. 108–218 applicable to taxable years beginning after Dec. 31, 2004, see section 205(c) of Pub. L. 108–218, set out as a note under section 807 of this title.

Effective Date of 1997 Amendment

Amendment by Pub. L. 105–34 applicable to contracts issued after June 8, 1997, in taxable years ending after such date, with special provisions relating to changes in contracts to be treated as new contracts, see section 1084(d) of Pub. L. 105–34, set out as a note under section 101 of this title.

Effective Date of 1996 Amendment

Amendment by section 1602(b)(1) of Pub. L. 104–188 applicable to loans made after Aug. 20, 1996, with exception, and provisions relating to certain refinancings, see section 1602(c) of Pub. L. 104–188, set out as an Effective Date of Repeal note under former section 133 of this title.

Effective Date of 1988 Amendment

Pub. L. 100–647, title I, § 1018(h)(2), Nov. 10, 1988, 102 Stat. 3583, provided that: “The amendment made by paragraph (1) [amending this section] shall take effect as if included in the amendments made by section 211 of the Tax Reform Act of 1984 [Pub. L. 98–369].”

Amendment by section 2004(p)(2) of Pub. L. 100–647 effective, except as otherwise provided, as if included in the provisions of the Revenue Act of 1987, Pub. L. 100–203, title X, to which such amendment relates, see section 2004(u) of Pub. L. 100–647, set out as a note under section 56 of this title.

Effective Date of 1987 Amendment

Amendment by Pub. L. 100–203 applicable to contracts issued in taxable years beginning after Dec. 31, 1987, see section 10241(c) of Pub. L. 100–203, set out as a note under section 807 of this title.

Effective Date of 1986 Amendment

Amendment by Pub. L. 99–514 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98–369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99–514, set out as a note under section 48 of this title.

Effective Date

Section applicable to taxable years beginning after Dec. 31, 1983, see section 215 of Pub. L. 98–369, set out as a note under section 801 of this title.

Plan Amendments Not Required Until January 1, 1989

For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of this title.

Notes of Decisions
Cited in 153 cases, 1939–1999 · leading case: Harris v. Comm'r, 340 U.S. 106 (1950).
Sort: Relevance Newest Treatment
Harris v. Comm'r, 340 U.S. 106 (1950). · cites it 4× “, § 812 (b), 26 U. S. C. § 812 (b). The case before us concerns not an antenuptial agreement, but what the Tax Court called a "property settlement agreement," contracted in anticipation of divorce.”
Henslee v. Union Planters Nat'l Bank & Trust Co., 335 U.S. 595 (1949). · cites it 2× “[2] "If a trust is created for both a charitable and a private purpose, deduction may be taken of the value of the beneficial interest in favor of the former only insofar as such interest is presently ascertainable, and hence severable from the interest in favor of the private…”
Comm'r v. Est. of Sternberger, 348 U.S. 187 (1955). · cites it 2× “The statute, 26 U. S. C. § 812 (d), allows as deductions from the gross estate the "amount of all bequests, legacies, devises, or transfers .”
Loughridge's Est. v. Comm'r of Internal Revenue. Comm'r of Internal Revenue v. Loughridge's Est., 183 F.2d 294 (10th Cir. 1950). · cites it 3× “Section 812 of the Internal Revenue Code, 26 U.S.C.A. § 812 , relates to the manner in which the net value of an estate shall be determined for the purpose of estate tax.”
Matter of Est. of Glover, 371 P.2d 361 (Haw. 1962). · cites it 4× “685, as follows: *574 "The marital deduction provision in the United States Revenue Act of 1948, Section 812(e), Internal Revenue Code, 26 U.S.C.A. § 812 (e), was passed to equalize the federal estate tax between residents of common law states and residents of community property…”
Est. of Harrison P. Shedd, Deceased First Nat'l Bank of Arizona, Phoenix v. Comm'r of Internal Revenue, 237 F.2d 345 (1st Cir. 1956). · cites it 2× “471, § 361, Internal Revenue Code of 1939, as amended, 26 U.S.C.A. § 812 : “§ 812. Net estate “For the purpose of the tax the value of the net estate shall be determined, in the case of a citizen or resident of the United States by deducting from the value of the gross estate—…”
James G. Smyth, Collector of Internal Revenue v. Mazie Erickson, of the Last Will & Testament of Timothy H. Carlon, Deceased, 221 F.2d 1 (9th Cir. 1955). · cites it 2× “00 should have been deducted pursuant to 26 U.S.C.A. § 812 (b) in determining the net taxable estate.”
Est. of Edward F. Pipe, Deceased, Nettie M. Pipe v. Comm'r of Internal Revenue, 241 F.2d 210 (2d Cir. 1957). “55 claimed under section 812(e) of the Internal Revenue Code of 1939, as amended in 1948, 26 U.S.C.A. § 812 (e). The deduction was sought with respect to a bequest by decedent to his surviving spouse of a legal life estate in personalty that had been valued for federal estate…”
Blodget v. Delaney, Collector, 201 F.2d 589 (1st Cir. 1953). “1, 124, Title 26 U.S.C. § 812 (d). The plaintiffs are the duly appointed) executors and trustees under the will of a citizen and resident of the Commonwealth of Massachusetts who died on April 24,.”
McMurtry v. Comm'r of Internal Revenue, 203 F.2d 659 (1st Cir. 1953). “, the estate tax], a relinquishment or promised relinquishment of dower, curtesy, or of a statutory estate created in lieu of dower or curtesy, or of other marital rights in the decedent’s property or estate, shall not be considered to any extent a consideration ‘in money or…”
Geyer v. Bookwalter, 193 F. Supp. 57 (W.D. Mo. 1961). · cites it 2× “Geyer, was granted a fee simple title to the real estate therein described and that the bequest, therefore, qualifies for a marital deduction under Section 812(e) (1) (A) of the 1939 Code ( 26 U.S.C.A. § 812 (e) (1) (A), 1952 ed.) (2) It is alternatively contended that, even if…”
Est. of Edward H. Luehrmann, Deceased v. Comm'r of Internal Revenue, 287 F.2d 10 (8th Cir. 1961). “Code of 1939, 26 U.S.C.A. § 812 (d), for specified charitable purposes.”
Show all 153 citing cases →
— 26 U.S.C. § 812(b)(3) — 1 case
Ensley v. Donnelly, Collector of Revenue, 190 F.2d 59 (5th Cir. 1951).
— 26 U.S.C. § 812(d) — 3 cases
Merrill Trust Co. v. United States, 167 F. Supp. 474 (D. Me. 1958).
Third Nat'l Bank & Trust Co. v. United States, 129 F. Supp. 442 (D. Mass. 1955).
Texas Christian Univ. v. Burgett, 267 S.W.2d 439 (Tex. App. 1954).
— 26 U.S.C. § 812(e) — 3 cases
Robertson v. United States, 199 F. Supp. 78 (N.D. Ala. 1961).
Smith v. United States, 158 F. Supp. 344 (D. Colo. 1957).
Eggleston v. Dudley, 154 F. Supp. 178 (W.D. Pa. 1957).
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.