California Revenue and Taxation Code

§ 24425

RTC § 24425 Effective Sep 29, 2004Div. 2 · Part 11 · Ch. 7 · Art. 3

Statute text

(a)No deduction shall be allowed for any amount otherwise allowable as a deduction which is allocable to one or more classes of income not included in the measure of the tax imposed by this part, regardless of whether that income was received or accrued during the taxable year.

(b)No deduction shall be allowed for any expense described in paragraphs (1) or (2) that is paid or incurred to an insurer if the insurer is a member of the taxpayer’s commonly controlled group and the amount paid or incurred would constitute income to the insurer if the insurer were subject to the California income or franchise tax.

(1)An expense described in this paragraph means any of the following interest amounts payable to an insurer in the same commonly controlled group:

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Legislative history

Amended by Stats. 2004, Ch. 868, Sec. 3. Effective September 29, 2004.