Page:United States Statutes at Large Volume 42 Part 1.djvu/273

 SIXTY-SEVENTH CONGRESS. Sess. I. Ch. 136. 1921. 245 of general apportionment prescribed b the Commissioner with the ¥"°°“*° “‘· approval of the Secretary. Gains, rotiyts and income from (1) trans- p¤(:§.`€iZ¤’§:r$’;mS°Y°” portation or other services renderedp artly within and partly without the United States, or (2) from the sale of personal ro erty roduced P§’,°’°* °,{,m{!,f,”‘§,’},"§ (m_whole or in part) by the taxpayer within ancllsolld widhout the wgxz United States, or produced (in whole or in art) by the taxpayer without and sold W’ll3l].1I1.l¤l1Q United States, shall be treated as derived p]artly from sources withm and partly from sources without the P me { nited States. Gams,_ profits and income derived from the urchase ¤1p\:¢l`:perty.° p°m°` of personal property within and its sale without the United States or from the (purchase of personal property without and its sale within the Unite States, sha be treated as derived entirely from the country m which sold. (f) As used in this section the words "sale" or "sold" include mg{?§.‘°’}'§',‘{“° "‘°"‘° "exchange" or "exchanged"; and the word "produced" includes "created," "fabricated,’ "manufactured," "extracted," "processed," "cured," or "aged." _ (g) A nonresident alien individual or a citizen entitled to the bene- ,,°1,§2*“'“,,";,,{’,' °‘§“',,§{ Bts of section 262 shall receive the beneBt of the deductions and credits gfgdtgs b¤°¤¤;§,c:g allowed in this title only by Bling or causin to be Bled with the col- allens,el,c. lector a true and accurate ret1u·n of his totaF income received from all sources corporate or otherwise in the United States, in the manner prescribed m this title; including therein all the information which the Commissioner may deem necessary for the calculation of such Pmm deductions and credits: Provided, That the beneBt of the credit rmeiin exempallowed in subdivision (e) of section 216 may, in the discretion of the “°“"· Commissioner, be received by Bling a claim therefor with the with- Common cm on holding agent. In case of failure to Ble a return, the collector shall mimeoaiéreuiim. collect the tax on such income, and all property belongiénglto such nonresident alien individual or foreign trader shall `able to distraint for the tax. rairrnmzsiurs AND rnnsonar. smivwm CORPORATIONB. P°"“°”m"" Sec. 218. (a) That individuals carrying on business in partner- d§§,'§lQf§?°“°°“m' ship shall be liable for income tax onl in their individual capacity. pgixs ¤¤¤¢<>¤¤¤¤¤¤¤· There shall be included in computingbtllie net income of each partner pai, p.319. his distributive share, whether distri uted or not, of the net mcome of the partnership for the taxable year, or, if his net income for such taxable year is computed upon the basis of a period different from that upon the basis of which the net income of the partnership is compluted, then his distributive share of the net mcome of the partners `p for any accounting period of the partnership ending within the Bscal or calendar year upon the basis of which the partner’s net income is computed. Addmm, mms (b) The partner shall, for the purpose of the normal tax, be allowed km _,,,m,,,mp ,,. as credits, in addition to the cre `ts allowed to him_under section 216, ¢¤*P°°¤S~ hisdpagipoiétionate share of such amouings splecmedtm sviubdivisions (a) an o section 216 as are receive e ar ners p. _ (c) The net income of the artnershirp shall be computed m the  i“°°"‘° °°"" same manner and on the same basis as provided in section_212 except that the deduction provided in paragraph (11) of subdivision (a) of section 214 shall not be allowed. _ _ Pmma, wm wp (d) Personal service cor orations shall not be sub]ect to taxation  under this title, but the indlividual stockholders thereof shall be taxed ,m{gggs“Qg;{, 3,:;; in the same manner as the members of partnerships. All the pro-   mw: visions of this title relating to partnerships and   members thereof qipuubia shall so far as practicable apply to personal service corporations and ,,m,_,,_ the stockholders thereof: Premded, That for the purpose of this sub- mggcéngaxg by db division amounts distributed by a personal service corporation dnmng ' its taxable year shall be accounted for by the distributees; and any