Treasury Regulations · 26 CFR
§ 1.812-3. Computation of loss from operations.
Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).
Regulation under 26 U.S.C. § 812
Cite as 26 CFR § 1.812-3
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Issued
- January 20, 1961 by T.D. 6535
- Issued under
- 26 U.S.C. § 812
- Length
- 410 words · about 2 min to read
- Cross-references
- cites 6 Code sections and 0 regulations; cited by 1
(a) Section 243(a) in respect to dividends received by corporations,
(b) Section 244 in respect of dividends received on certain preferred stock of public utilities, and
(c) Section 245 in respect of dividends received from certain foreign corporations.
For the taxable year 1960, X, a life insurance company, has items taken into account under section 809(c) amounting to $150,000, its share of the investment yield amounts to $250,000, and total deductions allowed by section 809(d) of $375,000, exclusive of any operations loss deduction and exclusive of any deduction for dividends received. In 1960, X received as its share of dividends entitled to the benefits of section 243(a) the amount of $100,000. These dividends are included in X's share of the investment yield. X has no other deductions to which section 812(c) applies. On the basis of these facts, X has a loss from operations for the taxable year 1960 of $60,000, computed as follows:
| Deductions for 1960 | $375,000 |
| Plus: Deduction for dividends received computed without regard to the limitation provided by sec. 246(b), as modified by sec. 809(d)(8)(B) (85% of $100,000) | 85,000 |
| Total deductions as modified by sec. 812(c) | 460,000 |
| Less: Sum of sec. 809(c) items and X's share of investment yield (including $100,000 of dividends) | 400,000 |
| Loss from operations for 1960 | (60,000) |
[T.D. 6535, 26 FR 536, Jan. 20, 1961]
Cross-references
Computed from the citations in the text of 26 CFR.
Code sections it cites
- § 809 Repealed
- § 812 Definition of company’s share and policyholder’s share
- § 246 Rules applying to deductions for dividends received
- § 243 Dividends received by corporations
- § 244 Repealed
- § 245 Dividends received from certain foreign corporations
Cited by 1 other regulation
Amendment history
From the source citation at the end of the section, newest first. T.D. is a Treasury decision; FR is the Federal Register.
- Issued by T.D. 6535 (26 FR 536)
Where it sits in 26 CFR
- Subchapter A Income tax
- Part 1 Income taxes
- Gain and loss from operations
Nearby sections
- § 1.811-2 Dividends to policyholders.
- § 1.811-3 Cross-reference.
- § 1.812-1 Taxable years affected.
- § 1.812-2 Operations loss deduction.
- § 1.812-3 Computation of loss from operations.
- § 1.812-4 Operations loss carrybacks and operations loss carryovers.
- § 1.812-5 Offset.
- § 1.812-6 New company defined.
- § 1.812-7 Application of subtitle A and subtitle F.