1.501(c)(15)-1. Mutual insurance companies or
associations
(a) Taxable years beginning after December 31, 1962. --An insurance
company or association described in section 501(c)(15) is exempt
under section 501(a) if it is a mutual company or association
(other than life or marine) or if it is a mutual interinsurer
or reciprocal underwriter (other than life or marine) and if
the gross amount received during the taxable year from the sum
of the following items does not exceed $150,000.
(1) The gross amount of income during the taxable
year from --
(i) Interest (including tax-exempt interest
and partially tax-exempt interest), as described in §1.61-7.
Interest shall be adjusted for amortization of premium and accrual
of discount in accordance with the rules prescribed in section
822(d)(2) and the regulations thereunder.
(ii) Dividends, as described in §1.61-9.
(iii) Rents and royalties, as described in §1.61-8.
(iv) The entering into of any lease, mortgage,
or other instrument or agreement from which the company may
derive interest, rents, or royalties.
(v) The alteration or termination of any instrument
or agreement described in subdivision (iv) of this subparagraph.
(2) The gross income from any trade or business
(other than an insurance business) carried on by the company
or association, or by a partnership of which the company or
association is a partner.
(3) Premiums (including deposits and assessments).
(b) Taxable years beginning after December 31,
1954, and before January 1, 1963. --An insurance company or
association described in section 501(c)(15) and paragraph (a)
of this section is exempt under section 501(a) if the gross
amount received during the taxable year from the sum of the
items described in paragraph (a)(1), (2), and (3) of this section
does not exceed $75,000.
(c) No double inclusion of income. --In computing
the gross income from any trade or business (other than an insurance
business) carried on by the company or asociation, or by a partnership
of which the company or association is a partner, any item described
in section 822(b)(1)(A), (B), or (C) and paragraph (a)(1) of
this section shall not be considered as gross income arising
from the conduct of such trade or business, but shall be taken
into account under section 822(b)(1)(A), (B), or (C) and paragraph
(a)(1) of this section.
(d) Taxable years beginning after December 31,
1953, and before January 1, 1955. --An insurance company or
association described in section 501(c)(15) is exempt under
section 501(a) if it is a mutual company or association (other
than life or marine) or if it is a mutual interinsurer or reciprocal
underwriter (other than life or marine) and if the gross amount
received during the taxable year from the sum of the following
items does not exceed $75,000:
(1) The gross amount of income during the taxable
year from --
(i) Interest (including tax-exempt interest
and partially tax-exempt interest), as described in §1.61-7.
Interest shall be adjusted for amortization of premium and accrual
of discount in accordance with the rules prescribed in section
822(d)(2) and §1.822-3.
(ii) Dividends, as described in §1.61-9.
(iii) Rents (but excluding royalties), as described
in §1.61-8.
(2) Premiums (including deposits and assessments).
(e) Exclusion of capital gains. --Gains from
sales or exchanges of capital assets to the extent provided
in subchapter P (section 1201 and following, relating to capital
gains and losses), chapter 1 of the Code, shall be excluded
from the amounts described in this section. [Reg. §1.501(c)(15)-1.]
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