Page:United States Statutes at Large Volume 40 Part 1.djvu/1085

 SIXTY-FIFTH CONGRESS. Sess. III. Ch. 18. 1919. 1067 wholly exempt from taxation imder this title as income to the tax- ¤*¤<>¤¤=w=- payer, or, in the case of a nonresident alien individual, the proportion of such interest which the amount of his gross income from sources within the United States bears to the amoimt of his gross income from all sources within and without the United States; (3) Taxes paid or accrued within the taxable year imposed (a) by ”°'”°“‘°*”°°~ the authority of the United Stats, except income, war-profits and E‘°°P°*°“·` excess—profits taxes ; or (b) by the authority of any of its possessions, except the amount of income, war—profits and excess—proiits taxes allowed as a credit under section 222; or (c) by the authority of any State or Territory, or any county school district, municipality, or other taxing subdivision of any State or Territory, not including those assessed against local benefits of a ldnd tending to increase the value of the gropertg assemed; or (d) in the case of a citizen or resi- g¤¤¤sg=uj;_§¤=· N dent of the nited tates, by the authority of any foreign country, d.mE.°° °t except the amount of income, war—proiits and excess-profits taxes allowed as a credit under section 222; or (e) in the case of a non- ,§,§_"°'"°““°"‘ resident alien individual, by the authority of any foreign country (except income, war—proiits and excess—profits taxes, and taxes assessed against local benefits of a kind tending to increase the value of the pgoperty assessed), upon dpropertgr or business;, (4) sses sustained during e taxa le year and not compensated B“‘“‘°”'°°°°‘· for by insurance or otherwise, if incurred in trade or business; Lwum M (5) Losses sustained during the taxable year and not compensated wml busses. for bfy insurance or otherwise, if incurred in any transaction entered into or proht, though not connected with the trade or business; but in the case of a nonresident alien individual only as to such transactio§ within the Unit•¢31§tates ;th bl f tg mm M es sustain unng' e taxa e ear 0 ropert not con-mm wm, bus,. nected with the trade or business (but in the casd) of a nbnresident ¤·•*· alien individual only property within the United States) if ' from fires, storms, shipwreck, or other casualty, or from theft, and if not compensated for by insurance or otherwise; wmhm dom (7%)lDebts ascertained to be worthless and charged off within the ` taxa e year; _ (8) A reasonable allowance for the exhaustion, wear and tear of nsiixihiiiiiii. °i bm prope-pty niet} in the trade or business, including a reasonable allowance oro o escence; (9) In the case of buildings, machinery, eqgilpment, or other facili— ¤:'iiii¤°°’iii°v'i»i:¤`Z»1.ii( ties, constructed, erected, installed, or acqui, on or after April 6, '°' “' "’°‘· 1917, for the production of articles contributing to the prosecution of the present war, and in the case of vessels constructed or acquired on or after such date for the transportation of articles or men contributing to the rosecution of the present war, there shall be allowed a reasonable dediuction for the amortization of such part of the cost umn of such facilities or vessels as has been borne by the taxpaiiegg but ' not again including any amount otherwise allowed under title or previous Acts of Congress as a deduction in computing net income. At an time within three years after the termination 0 the present mB°§g;;;E,¤,{1*;;{{l*;§é war, the Commissioner may, and at the request of the taxpayer shall, reexamine the return, and if he then finds as a result of an appraisal or from other evidence that the deduction originally allowed was incorrect, the taxes imposed by this title and y Title III for the year or years affected shall be redetermined; and the amount of tu p,°Y,.‘£{4,,°*°" °' °"" due upon such redetermination, if any, shall be paid upon notice and demand by the collector, or the amount of tax overpaid, if any, shall be credited or refunded to the taxpayer in accordance with the PMP-*¤¤¤ provisions of section 252; _ _ (10) In the case of mines, oil and gas wells, other natural deposits, ,,,{‘§·°""°“‘· ‘““‘ and tlmbéf, a reasonable allowance for depletion and for depreciation d-wggghygxsgg of improvements, according to the peculiar conditions in each case, °°' '