[Code of Federal Regulations]
[Title 26, Volume 8]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.803-5]

[Page 615]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
Determination of Tax Liability--Table of Contents
 
Sec. 1.803-5  Real estate owned and occupied.

    The amount allowable as a deduction for taxes, expenses, and 
depreciation upon or with respect to any real estate owned and occupied 
in whole or in part by a life insurance company is limited to an amount 
which bears the same ratio to such deduction (computed without regard to 
this limitation) as the rental value of the space not so occupied bears 
to the rental value of the entire property. For example, if the rental 
value of the space not occupied by the company is equal to one-half of 
the rental value of the entire property, the deduction for taxes, 
expenses, and depreciation is one-half of the taxes, expenses, and 
depreciation on account of the entire property. Where a deduction is 
claimed as provided in this section, the parts of the property occupied 
and the parts not occupied by the company, together with the respective 
rental values thereof, must be shown in a statement accompanying the 
return.