Page:United States Statutes at Large Volume 42 Part 1.djvu/266

 238 SIXTY-SEVENTH CONGRESS. Sess. I. Ch. 136. 1921. Frgnwgggg mk (a) Includes gains, profits, and income derived from salaries mgsqetgi m wages, or compensation fordpersonal service (mcluding in the case of md$,}§;_ ° °°”’°°°" the President of the Umte States, the judges of the Su reme and ,,§f’*·*°·P·*°"*5i‘**¤°¤‘*· inferior courts of the United States, and all other o&cers and employees, whether elected or appointed, of the United States, Alaska, Hawaii, or any political subdivision thereof, or the District _ of Columbia, the compensation received as such), of whatever kind bu€g’§;§S,g‘:’},§g_"°"°$· and in whatever form paid, or from professions, vocations, trades, businesses, commerce, or sales, or dealings in property, whether real _ _ or personal, growing_out of the ownership or use o or mterest in such de£*(§S°f‘;s,§_'°°“· d*'·‘*‘ property; also from interest, rent, dividends, securities, or the transkl mod in t action of any business carried on for gain or profit, or gams or profits yw°rw,,,,°d_ ““*"° and income derived from any source whatever. The amount of all such items (except as provided in subdivision (e) of section 201) shall be included in the gross income for the taxable year in which received b the tax ayer, imless, under methods of accounting per- . X . P . . mitted un er subdivision (b) of section 212, any such amounts are to be ro erly accounted for as of a different period; but Bxempmiwms f (K) Does not igcludlei thelfollowing items, which shall be exempt rom taxation un er t `s tit e: NQ; “'° *”“-“°¤°° h(1) Thedproceeds of life insurance policies paid upon the death of t e insure ; R•=¢¤¤;=,m *=·- (2)_ The amount received by theinsured as a return of premium_ or premiums paid by him under life insurance, endowment, or annuity contracts, either during the term or at the maturity of the term i ’ " 1 1 1 Gm mm ew ”“‘2§ii%i‘§$ iéiliii °$i“$£$’$cZ€§’p£¤” $E`3Z3“¤‘$°"§iiZhi)Z°?1Z§”£°té6a.t or uceptmcmmom descent (but) the income from siiich progerty shalll be included in gross income ; tg¤¢3;•$; ¤¤ S¢¤¢¤· (4) Interest upon (a) the obligations of a State, Territory, or any ° " political subdivision thereof, or the District of Columbia; or (b) rjamiam bqnas. securities issued under the provisions of the Federal Farm Loan Act §§{;,°,i};,f,;,,if{f;,,w,, of July 17, 1916; or (c) the obligations of the United States or its §;)L;g~1s¤¤¤ €<¤P¤¤¤¤¤¤ ossessions; or (d) bonds issued by the War Finance Corporation. reaémi, em., mma In the case of obligations of the United States issued after September §;§$,‘f,,€,’{§§,Q“" ’“ by 1, 1917 (other than (postal savings certificates of deposit), and in the ° case of bonds issue b the War Finance Corporation, the interest shall be exempt only ify and to the extent provided in the respective Acts authorizm the issue thereof as amended and su plemented, and shall be exciided from gross income only if and to the extent it is wfpolly exempt to the taxpayer from income, war—proiits and excessro ts taxes; m;,g;f;,},§,g0,gg$§,j;’;  (5) The_income of fore@ governments received from investrnents génmcansecunua, in the United States in stoc ·s, bonds, or other domestic securities, owned by such fore governments, or from interest on deposits in banks in the Unitedlgtates of moneys belo ° to such foreign governments, or from any other source within tie Dnited States; ,P¤r¤¤¤¤¤ i¤i¤ri<===. (6) Amounts received, through accident or health insurance or °`°"p°’m°"°°' 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; $*5***- °*°-· 9** *5* (7) Income derived from any public utility or the exercise of any idcgismmpublic uml essential governmental function and accruing to any State, Territory, or the District of Columbia, or an political subdivision of a State or Territory, or income accruin to tlie Government of any possession of the United States, or an pciitical subdivision thereof. mQ§°§mP';‘;'em*,f,;; Whenever any State, 'lxerritory, or the District of Columbia, or any thereof- 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 acquire, construct, operate, or maintam a