[Code of Federal Regulations]
[Title 26, Volume 7]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.581-2]

[Page 309]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.581-2  Mutual savings banks, building and loan associations, and 
cooperative banks.

    (a) While the general principles for determining the taxable income 
of a corporation are applicable to a mutual savings bank, a building and 
loan association, and a cooperative bank not having capital stock 
represented by shares, there are certain exceptions and special rules 
governing the computation in the case of such institutions. See section 
593 for special rules concerning reserves for bad debts. See section 591 
and Sec. 1.591-1, relating to dividends paid by banking corporations, 
for special rules concerning deductions for amounts paid to, or credited 
to the accounts of, depositors or holders of withdrawable accounts as 
dividends. See also section 594 and Sec. 1.594-1 for special rules 
governing the taxation of a mutual savings bank conducting a life 
insurance business.
    (b) For the purpose of computing the net operating loss deduction 
provided in section 172, any taxable year for which a mutual savings 
bank, building and loan association, or a cooperative bank not having 
capital stock represented by shares was exempt from tax shall be 
disregarded. Thus, no net operating loss carryover shall be allowed from 
a taxable year beginning before January 1, 1952, and, in the case of any 
taxable year beginning after December 31, 1951, the amount of the net 
operating loss carryback or carryover from such year shall not be 
reduced by reference to the income of any taxable year beginning before 
January 1, 1952.

[T.D. 6500, 25 FR 11737, Nov. 26, 1960; 25 FR 14021, Dec. 31, 1960, as 
amended by T.D. 8697, 61 FR 66588, Dec. 18, 1996]