Page:United States Statutes at Large Volume 42 Part 1.djvu/265

 SIXTY-SEVENTH CONGRESS. Sess. I. Ch. 136. 1921. 237 39 per centum of the amount b which the netincome exceeds °"°°“ "·*¥· $82,000 and does not exceed $84,0007; Smu—c0mmu°d` 40 per centum of the amount by which the net income exceeds $84,000 and does not exceed $86,000; 41 per centum of the amount by which the net income exceeds $86,000 and does not exceed $88,000; 42 per centum of the amount by which the net income exceeds $88,000 and does not exceed $90,000; 43 per centum of the amount by which the net income exceeds $90,000 and does not exceed $92,000; 44 per centum of the amount by which the net income exceeds $92,000 and does not exceed $94,000; 45 per centum of the amount by which the net income exceeds $94,000 and does not exceed $96,000; 46 per centum of the amount by which the net income exceeds $96,000 and does not exceed $98,000; 47 per centum of the amount by which the net income exceeds $98,000 and does not exceed $100,000; 48 per centum of the amount by which the net income exceeds $100,000 and does not exceed $150,000; 49 per centum of the amount by which the net income exceeds $150,000 and does not exceed $200,000; 50 per centum of the amount by which the net income exceeds $200,000. (b) In the case of a bona fide sale of mines, oil or gas wells, or any W§,§‘;'}°°’~ °“ °' gas interest therein, where the principal value of the gropprty has been 0;M§7¤;g3d¤£ Sggs demonstrated by prospecting or exploration an covery work payer. Y ` done by the taxpa er, the portion of the tax imposed b this section ,Xj"·‘°·P·*°°*·°'““”d° attributable to such sale shall not exceed, for the calendyar year 1921, 20 per centum, and for each calendar year thereafter 16 per centum, of- the selling price of such property or interest. NET mcomn or INDIVIDUALS DEFINED. wgiyidw net in- Sec. 212. (a) That in the case of an individual the term "net D°"“°“°“S "°¤} income" means the gross income as defined in section 213, less the liiiismwmemsum deductions allowed by section 214. (b) The net income shall be com uted upon the basis of the tax- mm °‘ °°“‘P°“"¤· payer’s annual accounting period iiiscal ear or calendar year, as the case may be) in accordance with tlie method of accounting regularly employed in keeping the books of such taxpayer; but i no such method of accounting as been so employed, or if the method employed does not clearly reflect the income, the complutation shall be made upon such basis and in such manner as in the opinion of the Commissioner does clearly reflect the income. If the taxEr;;1yer’s annual accounting period is other than a iiscal year as de ed in section 200 or if the taxpayer has no annual accounting period or does not kee books, the net income shall be computed on the basis of the calendlir year. _ _ H mm cm (c) If a taxpayer changes his accountmisperiod from fiscal year mmmmgygim. g° to calendar year, from calendar year to cal_ year, or from one fiscal year to another, the net income shall, with the approval of the Commissioner, be computed on the basis of such new accounting period, subject to the provisions of section 226. cizoss nwoomn nnrmnn. G""“‘“°°“‘“· Sec. 213. That for the purposes of this title (except as otherwise §,<g¤;=jg¤¤·¤· provided in section 233) the term “gr0ss income"- '