[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: 26CFR1.818-8]

[Page 689]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
Determination of Tax Liability--Table of Contents
 
Sec. 1.818-8  Special rules relating to consolidated returns and certain 
capital losses.

    Section 818(g) provides that, in the case of a life insurance 
company filing or required to file a consolidated return under section 
1501 for a taxable year, the computations of the policyholders' share of 
investment yield under subparts B and C, part I, subchapter L, chapter 1 
of the Code (including all determinations and computations incident 
thereto) shall be made as if such company were not filing a consolidated 
return. Thus, for example, if X and Y are life insurance companies which 
are entitled to file a consolidated return for 1975 and X has paid 
dividends to Y during such taxable year, Y must include such dividends 
in the computation of gross investment income under section 804(b). For 
other rules relating to the filing of consolidated returns, see sections 
1501 through 1504 and the regulations thereunder.

[T.D. 7469, 42 FR 12181, Mar. 3, 1977]