[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: 26CFR1.822-3]

[Page 706]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
Determination of Tax Liability--Table of Contents
 
Sec. 1.822-3  Amortization of premium and accrual of discount.

    Section 822(d)(2) makes provision for the appropriate amortization 
of premium and the appropriate accrual of discount, attributable to the 
taxable year, on bonds, notes, debentures or other evidences of 
indebtedness held by a mutual insurance company subject to the tax 
imposed by section 821. Such amortization and accrual is the same as 
that provided for life insurance companies by section 803(i) and shall 
be determined in accordance with Sec. 1.803-6, except that in 
determining the premium and discount of a mutual insurance company 
subject to the tax imposed by section 821 the basis provided in section 
1012 shall be used in lieu of the acquisition value.

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