Board of Governors of the Federal Reserve System

Data Dictionary

Item Number 4513

Call confidentiality applies to FFIEC 031/041.

Data Description:

Includes the bank's best estimate of the amount of the year-to-date interest expense included in "Total Interest Expense (4073)" (Schedule RI) that is subject to a 100 percent loss of deductibility for federal income tax purposes because it is deemed to have been incurred to carry tax-exempt securities, loans, and leases of states and political subdivisions in the U.S. acquired after August 7, 1986. Tax-exempt securities, loans, and leases are those securities, loans, and leases of states and political subdivisions in the U.S. whose interest is excludable from gross income under the regular tax system for federal income tax purposes, regardless of whether the income must be included in the bank's alternative minimum taxable income.

Excludes interest expense incurred to carry (1) tax-exempt securities, loans, and leases of states and political subdivisions in the U.S. acquired after December 31, 1982, but before August 8, 1986, and (2) so-called "qualified tax-exempt obligations" acquired after August 7, 1986, 20 percent of which is not deductible for federal income tax purposes. The general formula that may be used for computing the amount of interest expense that is subject to a 100 percent loss of deductibility is as follows:

Tax-Exempt Securities, Loans, And Leases Of

States And Political Subdivisions In The U.S.

Acquired After August 7, 1986 (Excluding   Year-To-Date Total Interest

"Qualified Tax-Exempt Obligations")

(Year-To-Date Average)   X   Expense (Schedule RI, item 4073)

Total Assets (Year-To-Date Average)

For the March 31, June 30, and September 30 Call reports, the amount reported in this item should not be an estimate of the amount of interest expense that will not be deductible for the entire calendar year.

NOTE:

Reported in Schedule RI - Income Statement for the FFIEC 031-034 reports.