Page:United States Statutes at Large Volume 43 Part 1.djvu/321

 290 SIXTY-EIGHTH CONGRESS. Sess. I. Ch. 234. 1924. ¤¤<¤>¤¤= ‘*¤- pany, not including taxes assessed against local beneiits of a kind tending to increase the value of the property assessed, and not in- cluding any amount paid out for new buildings, or for permanent 1m- _ provements or betterments made to increase the value of any proptJQZ{StZ¥°§Sh§$l{l,Oi§e}'§j c-rty. The deduction allowed by this paragraph shall be allowed in the case of taxes imposed upon a shareholder of a company_upon his interest as shareholder, which are paid by the company without reimbursement from the shareholder, but in such cases no deduction _ shall be allowed the shareholder for the amount of such taxes; pr§,l§-i¥ln°‘°’ °t°" °f (7) A reasonable allowance for the exhaustion, wear and tear, of property, including a reasonable allowance for obsolescence; I“°°'°sY°” d°°‘S‘ (8) All interest paid or accrued within the taxable year on its E‘°°*’"°”‘ indebtedness, except on indebtedness incurred or continued to purchase or carry ob `gations or securities (other than obligations of the United States issued after Selptember 24, 1917, and originally subscribed for by the taxpayer) the interest upon which is wholly _ exempt from taxation under this title; and ¤§£§?`§° m°°°y (9) In the case of a domestic life insurance company, the net income of which (computed without the benefit of this paragraph) is $25,000 or less, the sum of $2,000; but if the net income is more than $25,000 the tax imposed b section 243 shall not exceed the tax which would be payablle if tllie $2,000 credit were allowed, plus the amount of the net income in excess of $25,000. ,,§,,°°,{m,‘?§§$€° d°"“°‘ (b)) No deduction shall be made imder paragraphs (6) and (7) of su division (a) on account of any real estate owned and occupied in whole or in part by a life insurance company unless there is included in the return of gross income the rental value of the space so occupied. Such rental value shall be not less than a sum which in addition to anyerents received from other tenants shall provide a net income (a r deducting taxes, depreciation, and all other expenses) at the rate of 4 per centum per annum of the book value _ _ at the end of the taxable year of the real estate so owned or occupied. ` }”,‘;',§,$,?,$_‘g'{§§§“g$§,,_ (G) In the case of a foreign life insurance company the amount of §<;¤;¤ ¤f» Mm ¤'¤¤¢€<¤ its net income for any taxable year from sources within the United ° ”SS°`”°°S‘ States shall be the same proportion of its net income for the taxable vear from sources within and without the United States, which the reserve funds required by law and held by it at the end of the taxable year upon business transacted within the United States is of the reserve funds held by it at the end of the taxable year upon all _ business transacted. .,ti,‘§"*lf,Y,°¤°°'i?lQa”1§? Sec. 246. (a) IH lieu of the taxes imposed by sections 230 and 700, ¤¤¤*¤¤‘· there shall be levied, collected, and paid for each taxable year upon the net income of every insurance company (other than a life or mutual insurance company) a tax as follows: D°‘“°“"°‘ (1) In the case of suc a domestic insurance company the same ercentage of its net income as is imposed upon other corporations _ by section 230; F°""““· (2) In the case of such a foreign insurance company the same percentage of its net income from sources within the United States as is imposed upon the net income of other corporations by sec- Meaning of terms. hon 230'. _ (b) In the case of an insurance company subject to the tax im- ,.Gmi¤wm€_,, posed bv this section- _ (1) The term " gross income" means the combined gross amount, earned during the taxable year, from investment income and from underwriting income as provided in this subdivision, computed on the basis of the underwriting and investment exhibit of the annual statement approved by the National Convention of Insurance Commissioners;