Thrift Charter Conversion Tax Act of 1995

Summary

Thrift Charter Conversion Tax Act of 1995 - Amends the Internal Revenue Code to repeal Federal law concerning treatment of reserves for bad debts of savings associations which are required to convert into banks. Directs that in the case of any taxpayer who is required to change its method of computing reserves for bad debts: (1) such change shall be treated as a change in a method of accounting; (2) such change shall be treated as initiated by the taxpayer and as having been made with the consent of the Secretary of the Treasury; and (3) the net amount of adjustments required to be taken into account by the taxpayer shall be taken ratably over a six-taxable year period beginning after December 31, 1995. Prohibits the inclusion of a portion of a reserve in the gross income of a large bank beginning after December 31, 1995. Provides for the suspension of recapture if the taxpayer meets the residential loan requirement. Defines "residential loan requirement." Prescribes that in the case of any taxpayer which is a member of any controlled group of corporations the residential requirement shall be applied with respect to such group. Permits continued application of rules similar to the rules concerning inclusion for purposes of applying transitional rules with respect to the amount of such taxpayer's reserve for bad debts as of the close of the last taxable year before the disqualification year in cases where the taxpayer is not a large bank beginning after December 31, 1995. Prohibits the inclusion of a portion of reserve in gross income under the elective cut-off method. Requires that the amount of the reserve taken into account under Federal law which is a distribution to shareholders shall be the only amount of such reserve for bad debts which is not includible in gross income. Includes in the amount allowed as a deduction the amount paid during 1996 as a special assessment under provisions of the Federal Deposit Insurance Act, as amended by the Federal Thrift Charter Conversion Act of 1995, H.R. 2491 as introduced.

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Documents

6 official files

• Reported in House (text)

  Reported in House · EN · 7 November 1995

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• Reported in House (PDF)

  Reported in House · EN · 7 November 1995

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• Reported to House with amendment(s)

  summary · EN · 7 November 1995

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• Introduced in House (text)

  Introduced in House · EN · 18 October 1995

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• Introduced in House (PDF)

  Introduced in House · EN · 18 October 1995

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• Introduced in House

  summary · EN · 18 October 1995

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