[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: 26CFR1.592-1]

[Page 343]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.592-1  Repayment of certain loans by mutual savings banks, 
building and loan associations, and cooperative banks.

    There is deductible, under section 592, from the gross income of a 
mutual savings bank not having capital stock represented by shares, a 
domestic building and loan association, or a cooperative bank without 
capital stock organized and operated for mutual purposes and without 
profit, amounts paid by such institutions during the taxable year in 
repayment of loans made before September 1, 1951, by the United States 
or any agency or instrumentality thereof which is wholly owned by the 
United States, or by any mutual fund established under the authority of 
the laws of any State. For example, amounts paid by such institution in 
repayment of loans made by the Reconstruction Finance Corporation before 
September 1, 1951, are deductible under this section. Section 592 is not 
applicable, however, in the case of amounts paid in repayment of loans 
made by an agency or instrumentality not wholly owned by the United 
States.