Text: SF00477 Text: SF00479 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 422.61, subsection 2, Code 1995, is
1 2 amended by adding the following new paragraph:
1 3 NEW PARAGRAPH. f. A deduction shall not be allowed for
1 4 that portion of the taxpayer's expenses computed under this
1 5 paragraph which is allocable to an investment in an investment
1 6 subsidiary. The portion of the taxpayer's expenses which is
1 7 allocable to an investment in an investment subsidiary is an
1 8 amount which bears the same ratio to the taxpayer's expenses
1 9 as the taxpayer's average adjusted basis, as computed pursuant
1 10 to section 1016 of the Internal Revenue Code, of investment in
1 11 that investment subsidiary bears to the average adjusted basis
1 12 for all assets of the taxpayer. The portion of the taxpayer's
1 13 expenses that is computed and disallowed under this paragraph
1 14 shall be added.
1 15 Sec. 2. Section 422.61, Code 1995, is amended by adding
1 16 the following new subsection:
1 17 NEW SUBSECTION. 1A. "Investment subsidiary" means an
1 18 affiliate that is owned, capitalized, or utilized by a
1 19 financial institution with one of its purposes being to make,
1 20 hold, or manage, for and on behalf of the financial
1 21 institution, investments in securities which the financial
1 22 institution would be permitted by applicable law to make for
1 23 its own account.
1 24 Sec. 3. This Act applies retroactively to January 1, 1995,
1 25 for tax years beginning on or after that date. However, the
1 26 retroactive application of this Act applies only to financial
1 27 institutions that have an investment in an investment
1 28 subsidiary on or after July 1, 1995.
1 29 SF 478
1 30 mg/cc/26
Text: SF00477 Text: SF00479 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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