Uniform Tax Treatment of Financial Institutions Act

[AI summary unavailable — showing source text] Uniform Tax Treatment of Financial Institutions Act - Provides that any debt owed to a financial institution becoming worthless or partially worthless during the taxable year shall be charged to the reserve for losses on loans for purposes of business expense deductibility under the Internal Revenue Code of 1954. Redefines the term "bank" for purposes of the general rules applicable to banking institutions under the Internal Revenue Code. Changes the rules for determination of the reserve for losses for financial institutions for each taxable year. Provides for nonrecognition of gain or loss as a result of foreclosure on any property which was security for the payment of any indebtedness. Provides that the foreclosing party's basis in such property shall be the amount of the indebtedness for which the property was secured, plus costs of foreclosure. Provides new rules for the treatment of distributions of stock to shareholders by domestic building and loan associations where such distribution does not qualify as a deduction for dividends paid on deposits. Authorizes a deduction for the repayment of loans made before September 1, 1951, by the United States or any mutual fund establi…