26 U.S. Code § 591 - Deduction for dividends paid on deposits
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(a) In general
In the case of mutual savings banks, cooperative banks, and domestic building and loan associations and other savings institutions chartered and supervised as savings and loan or similar associations under Federal or State law, there shall be allowed as deductions in computing taxable income amounts paid to, or credited to the accounts of, depositors or holders of accounts as dividends or interest on their deposits or withdrawable accounts, if such amounts paid or credited are withdrawable on demand subject only to customary notice of intention to withdraw.
Source(Aug. 16, 1954, ch. 736, 68A Stat. 204; Pub. L. 87–834, § 6(f),Oct. 16, 1962, 76 Stat. 984; Pub. L. 97–34, title II, § 245(a),Aug. 13, 1981, 95 Stat. 255.)
1981—Pub. L. 97–34designated existing provisions as subsec. (a), inserted heading “In general”, and added subsec. (b).
1962—Pub. L. 87–834included other savings institutions chartered and supervised as savings and loan or similar associations under Federal or State law, and authorized amounts paid as interest as a deduction.
Effective Date of 1981 Amendment
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