§ 44-14-14 - Write-downs or reserves for security losses.
SECTION 44-14-14
§ 44-14-14 Write-downs or reserves forsecurity losses. – Whenever any taxpayer by requirement of regulatory authorities havingsupervision over it, shall write down any of its securities or establishreserves for the decrease in values of any of its securities, the taxpayer mayelect to treat the amount of the write-downs or reserves as deductions in theyear in which they are recorded on its books and records as allocated to anysecurity or group of securities, in which event the basis of the securitiesshall be adjusted to reflect the write-downs or reserves specifically allocatedto any security, and the adjusted basis shall be used in determining gains orlosses upon the sale or other disposition of the securities.