Treasury Regulations · 26 CFR
§ 1.832-6. Policyholders of mutual fire or flood insurance companies operating on the basis of premium deposits.
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. § 832
Cite as 26 CFR § 1.832-6
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Issued
- October 17, 1963 by T.D. 6681
- Issued under
- 26 U.S.C. § 832
- Length
- 232 words · about 1 min to read
For purposes of determining his taxable income for any taxable year, a taxpayer insured by a mutual fire or flood insurance company under a policy for which the premium deposit is the same regardless of the length of the term for which the policy is written, and who is entitled to have returned or credited to his on the cancellation or expiration of such policy the unabsorbed portion of the premium deposit not required for losses, expenses, or establishment of reserves, may, if such amount is otherwise deductible under this chapter, deduct so much of his premium deposit as was absorbed by the company during the taxpayer's taxable year. The amount of the premium deposit absorbed during the taxpayer's taxable year shall be determined in accordance with the schedule of unabsorbed premium deposit returns in effect for the company during such taxable year. If the taxpayer is unable to determine the applicable rate of absorption in effect during his taxable year, he shall compute his deduction on the basis of the rate of absorption in effect at the end of the company's taxable year which next preceded the end of the taxpayer's taxable year. In such a case, an appropriate adjustment will be made upon the final determination of the rate of absorption applicable to the taxable year.
[T.D. 6681, 28 FR 11130, Oct. 17, 1963]
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. 6681 (28 FR 11130)
Where it sits in 26 CFR
- Subchapter A Income tax
- Part 1 Income taxes
- Other Insurance Companies
Nearby sections
- § 1.832-2 Deductions.
- § 1.832-3 Taxable years affected.
- § 1.832-4 Gross income.
- § 1.832-5 Deductions.
- § 1.832-6 Policyholders of mutual fire or flood insurance companies operating on the basis of premium deposits.
- § 1.833-1 Medical loss ratio under section 833(c)(5).
- § 1.846-1 Application of discount factors.
- § 1.848-0 Outline of regulations under section 848.
- § 1.848-1 Definitions and special provisions.