[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: 26CFR1.822-7]

[Page 711]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
Determination of Tax Liability--Table of Contents
 
Sec. 1.822-7  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 818(b)(1), as 
amended by the Life Insurance Company Income Tax Act of 1959 (73 Stat. 
133), and shall be determined in accordance with paragraphs (a) and (b) 
of Sec. 1.818-3, except in the case of a mutual insurance company 
subject to the tax imposed by section 821, paragraph (b) of Sec. 1.818-
3 shall apply without regard to the date of acquisition and the basis 
provided in section 1012 shall be used in lieu of the acquisition value.

[T.D. 6610, 27 FR 8722, Aug. 31, 1962]