(1) In general A tax is hereby imposed for each taxable year on the life insurance company taxable income of every life insurance company. Such tax shall consist of a tax computed as provided in section
11 as though the life insurance company taxable income were the taxable income referred to in section
11.
(2) Alternative tax in case of capital gains
(A) In general
If a life insurance company has a net capital gain for the taxable year, then (in lieu of the tax imposed by paragraph (1)), there is hereby imposed a tax (if such tax is less than the tax imposed by paragraph (1)).
(B) Amount of tax The amount of the tax imposed by this paragraph shall be the sum of
(i) a partial tax, computed as provided by paragraph (1), on the life insurance company taxable income reduced by the amount of the net capital gain, and
(ii) an amount determined as provided in section
1201 (a) on such net capital gain.
(C) Net capital gain not taken into account in determining small life insurance company deduction For purposes of subparagraph (B)(i), the amount allowable as a deduction under paragraph (2) of section
804 shall be determined by reducing the tentative LICTI by the amount of the net capital gain (determined without regard to items attributable to noninsurance businesses).
