Page:United States Statutes at Large Volume 42 Part 1.djvu/267

 SIXTY-SEVENTH CONGRESS. Sess. I. Ch. 136. 1921. 239 public utility, no tax shall be levied under the provisions of this title ”'°°“” '*“· upon the income derived from the operation of such public utility, so far as the payment thereof will impose a loss or burden upon such State, Territory, District of Columbia, or political subdivision; but tig? p°”°°°1°“`“””p` this provision IS not intended and shall not be construed to confer upon such person any Hnancial gain or exem tion or to relieve such person from_the payment of a tax as provided For in this title u on the part or portion of such income to which such person is entitles under such contract; (8) The income of a nonresident alien or foreign corporation which et§°‘§§$f,°?,’§{.n,E,l;S°“§; consists exclusively of earnings derived from the operation of a ship or *°%>i¤5,¤*?iP$· ships documented under the laws of a forei country which grants °n mm an equivalent exemption to citizens of the Uiiited States and to corporations organized in the United States; (9) Amounts received as compensation, famil allotments and bixgf. risk {jd rm allowances under the provisions of the War Risk lrnsurance and the em.,aai§i1p:¤¤1;i?m’ Vocational Rehabilitation Acts, or as pensions from the United States for service of the beneficiary or another in the military or naval forces of the United States in time of war; (10) So much of the amount received by an individual after De- sf,;g§‘mb§%§r°gj;; cember 31, 1921, and before January 1, 1927, as dividends or interest ceedi¤g_$30i{. from domestic building and loan associations, operated exclusively for T°"°m°°‘°°` the purgppe of making loans to members, as does not exceed $300; (1 1) e rental value of a dwelling house and appurtenances thereof d,§f;,¤,}_g°‘ m*'“S*°"° furnished to a minister of the gospel as part of his compensation; ` (12) The receipts of shi owners’ mutual protection and indemnity °,§1€e‘;s9*P',;‘,u,{’,;, jlgg associations, not or anized) for profit, and no part of the net earnings ciations. _ of which inures to gre benefit of any private stockholder or member, R°Sm°°°°’°°°‘ - but such corporations shall be subject as other persons to the tax ' upon their net income from interest, dividends, and rents. PM. v; 856- (c) In the case of a nonresident alien individual, oss income §@‘},‘3,“,,,§§‘,§,°,,.",f;,, means only the gross income from sources within the Ugiited States, ggg_=mU¤m Smss determined under the provisions of section 217. ` ‘ Dnnuctions Ar.1.owEn INDIVIDUALS. D°°“°‘*°“’~ °“°"°'*· Sec. 214. (a) That in computing net income there shall be allowed 1°°"” °*’°“°°°‘ as deductions: (1) All the ordinary and necessary expenses paid or incurred during B"‘*“’“ °*P°“'°'· the taxable ear in carrying on any trade or business, including a reasonable allowance for salaries or other compensation for personal Services actually rendered· travel' ex enses (including the entire cm'§yg_¤1i¤z. ¤¢¤-. inamount expended for meals and l while away from home m the pursuit of a trade or business; an rentals or other payments 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 m whic he has no equity; (2) All interest paid or accrued within the taxable year on mdebt-   ‘*°"”· edness, except on indebtedness incurred or contmued to purchase or carry obligations or securities (other than obligations of the_ United States issued after September 24, 1917, and orxgmallly subscribed for by the taxpayer) the interest upon which IS who y exempt from taxation under this title; _ _ _ (3) Taxes paid or accrued withm the taxable year except (a) in-  come, war-profits, and excess—profits taxes imposed by the authonty of the United States, (b) so much of the income, warjprofits and excess-profits taxes, imposed by the authow of any foreign country or possession of the United States, as is owed as a credit imder section 222, (c) taxes assessed against local benefits of a l¤.I1d.t0 to increase the value of the property assessed, and (d) taxes im