Whenever any taxpayer by requirement of regulatory authorities having supervision over it, shall write down any of its securities or establish reserves for the decrease in values of any of its securities, the taxpayer may elect to treat the amount of the write-downs or reserves as deductions in the year in which they are recorded on its books and records as allocated to any security or group of securities, in which event the basis of the securities shall be adjusted to reflect the write-downs or reserves specifically allocated to any security, and the adjusted basis shall be used in determining gains or losses upon the sale or other disposition of the securities. History of Section.P.L. 1942, ch. 1212, art. 7, § 6; P.L. 1943, ch. 1341, § 3; P.L. 1947, ch. 1957, § 1; G.L. 1956, § 44-14-14.
Rhode Island Legal Code