### Question
Can you define what excess equity base means?


### Answer
**Excess equity base** is defined as the following in *26 U.S.C. § 809*:

> the excess of—


(i) the average equity base of the company for the taxable year, over


(ii) the amount which would be its average equity base if its equity percentage equaled the following percentage:


  


**For taxable years**
**beginning in:****The percentage is:**
  198414.5
  1985 or 198614   
  1987 or 198813.5  



        


In no case shall the excess equity base for any taxable year be greater than the excess equity base for the company's first taxable year beginning in 1984

#### Citation:
  - *26 U.S.C. § 809*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter L-Insurance Companies > PART I-LIFE INSURANCE COMPANIES > Subpart C-Life Insurance Deductions**

