(3) Adjusted surplus For purposes of this subsection— (A) In general The adjusted surplus as of the beginning of any taxable year is an amount equal to the adjusted surplus as of the beginning of the preceding taxable year— (i) increased by the amount of any adjusted taxable income for such preceding taxable year, or (ii) decreased by the amount of any adjusted net operating loss for such preceding taxable year. (B) Special rule The adjusted surplus as of the beginning of the organization’s 1st taxable year beginning after December 31, 1986 , shall be its surplus as of such time. For purposes of the preceding sentence and subsection (c)(3)(C), the term “surplus” means the excess of the total assets over total liabilities as shown on the annual statement. (C) Adjusted taxable income The term “adjusted taxable income” means taxable income determined— (i) without regard to the deduction determined under this subsection, (ii) without regard to any carryforward or carryback to such taxable year, and (iii) by increasing gross income by an amount equal to the net exempt income for the taxable year. (D) Adjusted net operating loss The term “adjusted net operating loss” means the net operating loss for any taxable year determined with the adjustments set forth in subparagraph (C). (E) Net exempt income The term “net exempt income” means— (i) any tax-exempt interest received or accrued during the taxable year, reduced by any amount (not otherwise deductible) which would have been allowable as a deduction for the taxable year if such interest were not tax-exempt, and (ii) the aggregate amount allowed as a deduction for the taxable year under sections 243 and 245. The amount determined under clause (ii) shall be reduced by the amount of any decrease in deductions allowable for the taxable year by reason of section 832(b)(5)(B) to the extent such decrease is attributable to deductions under sections 243 and 245.
26 USC § 833(b)(3)
None identified. Default scope is assumed to be the entire title.