[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: 26CFR1.822-9]

[Page 714-715]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
Determination of Tax Liability--Table of Contents
 
Sec. 1.822-9  Real estate owned and occupied.

    Section 822(d)(1) provides that the amount allowable as a deduction 
for taxes, expenses, and depreciation on or

[[Page 715]]

with respect to any real estate owned and occupied in whole or in part 
by a mutual insurance company subject to the tax imposed by section 821 
(a) or (c) shall be 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.

[T.D. 6681, 28 FR 11115, Oct. 17, 1963]