Page:United States Statutes at Large Volume 40 Part 1.djvu/1084

 1066 SIXTY—FIFTH CONGRESS. Suse. III. Ch. 18. 1919. ¤*°°“ ’*¤· Corporation, the interest shall be exempt only if and to the extent provided in the respective Acts authorizing the issue thereof as amended and su p emented, and shall be excluded from gross income only if and to the extent it is wholly exempt from taxation P°“·p"°°& to the taxpayer both under this title and under Title III; m;]·g¤ig: 8::;;; (5) The income of foreign governments received from investrmm A.lT|10!'l0£DS8C\1l'l· ments in the United States in stocks, bonds, or other domestic “°" securities, owned by such foreign governments, or from interest on deposits in banks in the United States of moneys belonging to such foreign governments, or from any other source within the United States; mQP•¤:¤¤¤ii¤l¤f¥P¤Y- (6) Amounts received, through accident or health insurance or ' under workmen’s compensation acts, as compensation for personal injuries or sickness, plus the amount of any damages received whether by suit or agreement on account of such injuries or sickness; p,§,§_§§°¤°§‘,;,§_“‘·°““ (7) Income derived from any public utility or the exercise of any essential governmental function and accruing to any State, Territory, or the District of Columbia, or any political subdivision of a State or Territory, or income accruing to the government of airy ppssession of the United States, or any political subdivision ereo. ,,,,l’§§§,‘§§"°§', §°§°‘°° Whenever any State, Territory, or the District of Columbia, or any political subdivision of a State or Territory, prior to September 8, 1916, entered in good faith into a contract with any person, the object and purpose of which is to acpuire, construct, operate, or maintain a public utility, no tax shall be evied under the provisions of this title upon the income derived from the operation of such public utility, so far as the payment thereof will  a loss or burden upon such ugf P°”°“l°°°'°' State, Temtory, District of Colum ia, or political subdivision; but this provision is not intended to confer upon such person any financial gain or exemption or to relieve such person from the payment of a tax as provided for in this title upon the part or portion of such P _ income to which such person is entitled under such contract; person in the military or naval forces of the United) States as salary uma. or compensation in any form from the United States for active services in such forces, as does not exceed $3,500. §gy;°S}g* §.}‘;}",,;, (c) In the case of nonresident alien individuals, gr·oss income insems mms. cludes only the gross income from sources within the United States, including interest on bonds, notes, or other interestrbearing obligations of residents, coglporate or otherwise, dividends from resident coizporations, and in uding all amounts received (although paid un er a contract for the sale of goods or otherwise) representing pIrofits on the manufacture and disposition of goods within the nited States. - ”°"“°“°"’ ‘“"""° bmiucrroxs Armownn. °*’l°°*’ ’P°°“‘°'*· Sec. 214. (a) That in computing net income there shall be allowed as deductions: B¤¤iw·¤¤¤r¤¤¤¤¤=- (l) All the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, including a reasonable allowance for salaries or other compensation for personal servrces actually rendered, and including rentals or other pay- ments required to be made as a condition to the continued use or possession, for purposes of the trade or business, of property to which the taxpayer has not taken or is not taking title or in which he has no eqm v; _ ' rn¤·.m=¢¤¤¢=. (2) All mterest paid or accrued within the taxable year- on indebth¤¤r¤¤¤· edness, except on indebtedness incurred or continued to purchase or carry obligations or securities (other than obligations of the United States issued after September 24, 1917), the interest upon which is
 * c.,_°”°"°‘°"°'”°"' (8) So much of the amonmt received during the resent war by 8