Page:United States Statutes at Large Volume 43 Part 1.djvu/322

 SIXTY—EIGHTH CONGRESS. Sess. I. C11. 234. 1924. 29] (2) The term " net income means the gross income as defined ,,I_{;¤g1¤;§m’gA§- in paragraph (1) of this subdivision less the deductions allowed by ' section 247 · (3) Theiterm " investment income " means the gross amount of °,,g§§'°“m°“‘ "" income earned durin the taxable ear from interest dividends and ts ted a fdlo s y ’ ` ren compu s o w : To, all interest, dividends and rents received during the taxable S°m°°°°f year, add interest, dividends and rents due and accrued at the end of the taxgple ygar, a(il1dfd<;(luct algdinterest, {dividends and rents due and accru att een o thepree `ngtaxa eyear· (4) The term " underwriting income " means the premiums earned w;g't‘°'"’“”‘ “" on insurance contrpggs during the taxable year less losses incurred and expenses incur · (5) The term "preiniums earned on insurance contracts during m;`§{,‘}'§g,‘c,“_*,}f{,,cf’5%'“°" the taxable year " means an amount computed as follows: From the amoimt of gross premiums written on insurance con- °°"“’“‘°“°“°'· tracts duri the taxable year, deduct return premiums and premiums paidlgor reinsurance. To the result so obtained add imearned premiums on outstanding business at the end of the preceding taxable year and dedugg unearned premiums on outstanding business at the end of the taxa e year ·, (6) The term " losses indurred " means losses incurred during the “L°°°°“‘°°“"°°·' taxable year on insurance contracts, computed as follows : _ com umm ol To losses paid during the taxable year, add salvage and reinsur- P ance recoverable outstanding at the end of the preceding taxable year, and dpdtnict salgbage and rer}nsul1;ance recovers;) le cgpltstgiédixilg at the endo etax eyear. ot e tsootain a a impai losses outstanding at the end of the taxable year and deduct unpaid losses outstanding at the end of the (preceding taxable year; (7) The term ‘expenses incurre " means all expenses shown on the annual statement approved by the National COHVBDt10D of Insluraxiize Commissioners, and ghall bebpomputeadkps follows: d Comwmiomm o a expenses paid during the taxa e year expenses unpai at the end of the taxable year and deduct expenses unpa1d at the end of the preceding taxable year. For the purpose of computing the net income subject to the tax imposed by this section there shall be deducted from expenses incurred as defined in this paragraph all expenses incurred which are not allowed as deductions by section 247. Nmmme Sec. 247. (a) In computing the net income of an insurance com- Deducmms`m0w°d_ panivedsubject to the tax imposed by section 246 there shall be allowed as uctions: . _ X (1) All ordinary and necessary expenses incurred, as provided in Bmlmse mm` par aph (1) of subdivision (a) of section 234; mmsmu dem f(§TAll éggerest as provided in paragraph (2) of subdivision (a) ' o section · 'léagics ais provided in paragraph (3) of subdivision (a) of T“°"‘ section · I (4) Losses incurred; d b 5 Bad debts in the nature of agency balances and bills receiv- W°"m°” ° °S` able ascertained to be worthless and charged off within the taxable Wal" . . _ (gg _The amount received as dividends from corporations as pro- m£§}°Z $s.d°' vid m paragraph (6) of subdivision (a) of section 234; _ Emmptmmm (7) 'I`he amount of interest earned during the taxable year which ` under paragraph (4) of subdivision (b) of section 213 is exempt from taxation under this title, and the amount of interest allowed as a credit under section 236; _ mw 0, (8) A reasonable allowance for the exhaustion, wear and tea1·_ of many. ggpperty, as provided in paragraph (7) of subdivisiorr (a) of section 7