Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 60-35

1960-1 C.B. 267

IRS Headnote

Examples of real and personal property to be excluded from the term `assets' as used in section 805(b)(4) of the Internal Revenue Code of 1954, as added by the Life Insurance Company Income Tax Act of 1959.

Full Text

Rev. Rul. 60-35 /1/

Advice has been requested as to the specific items of real and personal property that should be excluded from the term `assets' in section 805(b)(4) of the Internal Revenue Code of 1954, as added by the Life Insurance Company Income Tax Act of 1959, Public Law 86-69, C.B. 1959-2, 654.

Section 805(b)(4) of the Code provides that the term `assets' means all assets of the life insurance company, including nonadmitted assets, except real and personal property, with the exclusion of money, used by the life insurance company in carrying on an insurance trade or business. The assets to be excluded are those assets which are considered, for Federal income tax purposes, to be `used by the life insurance company in carrying on an insurance trade or business.'

Accordingly, the following items are the only ones to be excluded from the term `assets' as being considered `used by the life insurance company in carrying on an insurance trade or business':

(1) The home office and branch office buildings owned and occupied by the life insurance company;

(2) Furniture and equipment owned by the life insurance company and used in the home office and branch office buildings occupied by the life insurance company;

(3) Supplies, stationery, and printed matter used in the operations conducted in the home office and branch office buildings occupied by the life insurance company where, for tax purposes, such items are inventoried; and

(4) Automobiles and other depreciable personal property used in connection with the operations conducted in the home office and branch office buildings occupied by the life insurance company.

However, if any item, or portion thereof, of property falls within one of the above listed groups and also is an `investment' asset (an asset from which gross investment income, as defined in section 804(b), is derived), such item, or portion thereof, shall not be excluded from the term `assets.'

/1/ Based on Technical Information Release 191, dated December 8, 1959.