### Question
How is the term prorated amounts defined?


### Answer
The term **prorated amounts** is defined in *26 U.S.C. § 805* as the following:

> tax-exempt interest and dividends other than 100 percent dividends

#### Citation:
  - *26 U.S.C. § 805*
  - 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**

