Page:United States Statutes at Large Volume 42 Part 1.djvu/269

 SIXTY-SEN ENTH CONGRESS. Sess. I. Ch. 136. 1921. 241 deduction in comput' net income. At an time before M 'N°°°*-‘% nx- 1924, the Commissionldigmay, and at the requegt of the taxpaye‘irI;1:lli1al:l, ¢¤ii°2ii?Ii1iii»°2il1" bg reexamme the return, and if he then Ends as a result of an appraisal ‘°“’ Mmh 3* mi or from other evidence that the deduction originally allowed was incorrect, the income, war- roiits, and excess-profits taxes for the year or years affected shall be redetermined; and the amount of tax P°"°°“° °’ '°‘““°‘ 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 P°"*p‘m‘ provisions of section 252; (10) In the case of mines, oil and gas wells, other natural deposits, b,,,Mi§€,§*°""°u’*‘““‘ timber, a reasonable allowance for depletion and for depreciation uxugmeggigg davis of im rovements, according to the peculiar conditions in each case, °¤’ W °°’°m“ basecl ugm cost including cost of development not otherwise deducted: romdcd, That m the case of such roperties ac uired prior §i$°ii'°”is acquired to March 1, 1913 the fair market value of &e ropert ((0r the tax- P"°' ‘° “”°" ’» *9*3- payer's interest therein) on that date shall be tallcen in Ecu of cost up to that date: Provided further, That in the case of mines, oil and gas Discovered uimerwells, discovered by the taxpayer, on or after March 1, 1913, and not te" acquired as the result of urc use of a proven tract or lease, where the fair market value of Sie lproperty is materially disproportionate to the cost, the depletion a owance shall be based upon the fair market value of the propepg at the date of the discove, or within _ thirty days thereafter: A promkled further, That suleh depletion d,§;g3§`,y“”(?§;,§*§?°° °“ allowance based on discovery value shall not exceed the net income, com&uted without allowance for depletion, from the property upon whi the discovery is made except where such net income so computed is less than the depletion allowance based on cost or fair Regulations ,0 be market value as of March 1, 1913; such reasonable allowance in all 1>r¤¤·=ri\>¤¤- the above cases to be made under rules and regulations to be prescribed by the Commissioner, with the aréproval of the Secretary. Lmg In the case of leases the deductions allowe by this paragraph shall be equitably apportioned between the lessor and lessee; (11) Contributions or gifts made within the taxable year to or for §}},'§;,f§§,, ,,w,_ the use of: (A) The United States, any State, Territory, or any political subdivision thereof, or the District of Columbia, for ex- _ clusively public purposes; (B) my ¢01'P0T¤*·10¤» 0i' community 0h%St» Nicigdiiglmltlinxiiiiiiij fund, or foundation, organized and operated exclusively for religious, •¢¢·.¤rs¤¤i=¤¤i¤·¤=».•·¤¤· charitable, scientific, literary, or educational purposes, including posts of the American Legion or the women’s auxiliary units thereof, or commu for the prevention of cruelty to children or animals, no part of the ' net earnings of which inures to the benefit of any private stockholder Vocational rumanior individual; or (C) the special fund for vocatiqnalrehabilitation ¢¤gig;{f,%¤g;6,9_ authorized by section 7 of the Vocational Rehabilitation Act; to an mm ’ amount which in all the above cases combined does not exceed 15 ‘ ‘ er centum of the taxpayer’s net income as computed without the _ nwennszaesisuen benefit of this para aph. In case of a nonresident alien individual ¤¤d·'¤*¤¤*S· this deduction shall¥e allowed only as to contributions or gifts made to domestic corporations, or to community chests, fimds, or foundations, created in the United States, or to such vocational rehabilitation fund. Such contributions or giifts shall be allowable as deductions only if verified ploder rulesalanf tplegglatiqns prescribed by the Commissioner, with e a rov o e ecre ; _ _ P  in _ (12) If propert igpcompulsorily or in;-ldlruntaruly converted into uma:} ¤¤¤ii·°el.§i¤¤v°.i1 cash or its equivalent as a result o (A) its destruction m whole or in P”°P°“Y· part, (B) theft or seizure, or (C) an exercise of the power of requisi- commas ommdp tion or condemnation, or the threat or imnunence thereof;  if the taxpayer proceeds forthwith in good faith, under regulations prescribed by the Commissioner with the approval of the Secretary, to expend the proceeds of such conversion m the acquisition of other 421;$¢)°—‘..>——"’ 16