Page:United States Statutes at Large Volume 44 Part 1.djvu/1996

 ,_§954  TITLE 26.-—gI2YTE1 of {the United States, and aI1_`.othe1' omcem and. employees, _ whether elected or appointed, oi the United, "States, Alaska, · Hawaii, or any political subdivision. thereof, or the District of Columbia, the wmpensadon received as such), ot whatever had ~ ated ia whatever form paidyor - from o rprofewions, vocations, trades, husinessw, commerce, or sales or d@]j11gS»iIlil)¥0DBlrtY•_ whether real or personal, growing out of the.-mvnership sor use of jar interwt in as such properug also from interest, rent, divicleéads, securities, or the transaction of any lmsinws carrled on sor gain- or proat, or gains or pronts and- `income derived from ‘ say source whatever. ·'1‘o amount ot all sueh items shall be  iaclnded in the gross income for the miable year in_ which received by the mxpayer, unless, under methods of·S.CC0lIDfjI1g_ mrxaitted under `subdiyisio·n— · (b) of section 212, any meh axnounts are to be properly accounted for as of ea diierent (b) The term “ gross income'} does not include the tollewing items; which shall be exempt from taxation under this title: ~, 7. - ` l (1) Amounts received under a life, ins·urance contract paid by reason of the death of the insured; whether in a· single ’ sum, or in installments (but if such amounts are held by_ the insurer I under an [agreeinent for paydnterest thereon, the interest 'paymentzyshall be included · in. gross income); ` .(*2.) Amounts received (other than `·8.I!l0I111tS paid byfgeason of the asset oi the insured and interest payments on- such j amounts) funder g life insurance, endowment, or annuity contract, but if such amounts (when. added to amounts received before tlie taxable _ Year under suéh contract;) exceed the aggregate premiums or consideratiqil paid (Whéthéii Q1' mt Paid daring ·» the taxable year) then the excess shall be included ain t gross iaconaeg In the case of a txanster for a valuable con-_ ` sideration, by assignment or otherwgse, ot at li1‘e.insa·rance, endowmeiatg or annuity contract, or any inmrest therein, only the actual value ot such consideration and the amount o£—thedpreminms_ and other sums subsequently paid by the transferee shall be exempt `from taxation under paragraph "(1) or this oarssra1:>h:‘    I' l _,,,· M 5 (3) The ralue gt property acquigfed by gift, bequest, devise, · orinheritaace (but the income from  uclr property shall be in-L eluded in gross income); _» __ . . .· _ ~ ‘ ‘ (4) Interest upon (A) the obligations of e State, Territory, _ or aa? political subdivision thereof, or the District of Columbia; or (B) securities issued under the ·provlsions of the Federal ,,F&I’1I1 Loan Act, or under the provisions of such Act as amended; or (C )‘1 the obligations ot the United Statm `or its possessions. Every person owning any ot ‘t.l;l_e obligations or securities enumerated in clause (A), _"(B)°, or (C) shall, in the return required by this title, submit a etatement show·inS·`t.he’ somber and amount ot such obligations and securities owned by himand the income received therefrom, in -sucl1_ fo1°m_ and with such information as the Commissioner may require. In the caseot obligations of the United Statm issued after tembcr 1, 1917 (other. than postal savings certincstesa of de-. posft)", the interest shall be exempt only it and to the extent provided lin the respective  authorizing the lssne thereof, as amended and supplemented? and shall be excluded ,f1;onz {gross income only if and to the ¢it.€Ut· it is jsdxolly exempt to the taxpayer from ineorne taxes ;' _ — ‘» . " - _(£f§)‘ The income of foreign governments received from investmoats la the United States in stocks, bonds, or otherxdomes tie seouritios. oxs·uo¤;l by- such foreign governments, or front interest oxi dopaosits in banks in the`U;1ited States of moneys i beloegging to smirk ftiltigll’g0$’t:ll’1lll3(311{$§, or ima} any other source vtithzt the United States: _ ‘ - . e Q  ·   ·L _ (6) Amounts recoirotl, through accident or health insurance, or under workmerrs compensation acts, as··eompeasatlox1_-. for personal injuries or sickness, plus the amount of any damages

2NAL%IE\>ENUB 3  _ 1982 reoavod whether by suit or agreement on account: of sue}; injuries orsiekness; i ~ ·  {E 9 ' ` (7 )_ Income derived `fI'0D1_ any ‘pnblie utility or the exercise of any e$entla1 governmental.func¤on and accruing to any State, Territory, or the District of Columbia, or any ~ Iiolitieei subdivision of `a State or Territory, or ineome accruing to the Government _ of anyapossession of the United States, or any politiml `subdivmon thereof; ·· -‘ 5. “ " · ; Whenever any State, `Terzgitory, or the {District of Columbia, or any political subdivision of a State g%r‘TTerritory, prior to September 8, 1916, entered in ‘good faigh into · a contract with any person, the object and purpose of srhich is to acquire, con-' Strqct, operate, or. mai.ntain_~a public utility;-— _ · I . ‘ - · (A) If by the terms of-such eontraet the tax iniposéd by this title is to be.paicLout_of the proceeds from the ojperatiozl of such public utility; prior to `any° division of sneh proceed; between the person rand the State, iTerritory,‘ political subdivision, o1·_ the District of Columbia, and if, but for the in;- positsiou of the tax` imposed by this title, a part of each proceeds for the taxable year would I accrne directly to or for the also of such State,. Territory, political subdivision; or the District; of Golumbia, then ata: upon the net income from the operation of such public ntility shall be levied; assessed, collected, .and paid in the manner and at the rats prescribed in this title. . but there shall, be refunded __to such State, Territory, political subdivision, or the District of Columbia: (under rnlesiand regu-· latious to be prescribed by the comxnis.§onei·.with¤ the appsotal of the Secretary)  amount which   the same relation to the amount of the tax.as.the amodnt whleh (but for the inaposition qi thee taut imposed by this title) would have `aeerned directly to or for the use of such StateQ Territory; political sebdivisiou, or the District of Columbia, bwrs to the amount of Q the net income from the operationaof such public utility for l such taxableyeaif —-. ·-  6 (B) _If by the terms of such contract no part_of the proceeds. from the operation of the public utility for the taxable gear would, irrespective of the tax lmpmed by this title, aeeme directly to. or for » the use of such State; Territory, political subdivision, or the District‘of.Columbta,_then the tax anon. the not income ot. snch person from the operation of meh. pantie utility shall be levied, aése$ed,.·.colleeted, and paid at the man· 11e1•‘an_d at the ratespreseribed in this title; _ _ I _` _. ;(8) The income of a nonresident alienor foreign corporation whichoponsism exclusively of earnings derived hom the opera- tion ofa ship or ships documented nnderjthetlaws of a. foreign country whieh `grants an equivalent exemption no cldzens of the United Stat& and to corporations, organlned or the United .States§: o _ .-- o i · —  _‘ I (9) Amounts received as compensation;-famHy allotments and allowances under the provisions of- the War Risk Insnranee and the-Vocational Reha_bilitationActs or the World WarlVeterans’ Act, 1924, or as pensions from the United Statm for service of the benedciary or anotherin the military»or`naval mrow of the United States in tlnzie of war, or as a Smte norman for mvioes renderedby the benedciary. or another for which the State is paying a pension; “. _ i t (10) The amount 1‘€£‘€{\’€d`bY an in®v·idnal as dividends or interest from domestic building and loan assodatioas, substantiily all the business of which is condned to making loans to members, but the amonntexeluded from  ineome under this paragraph as any taxable yea} shall not exceed i$00§ B _ (11), The irental value of a dwelling house and appurtenances thereof 'furnished to,a minister of the gospelas part of · his <·ompensation‘;  · - V o i _   ' · (12) The receipts of shipowners" mutual proteetion and ine demnity associations, not orgniaed for profit, and no part of the net earnings of vehich inures to the )be·ne§‘t of any private. shareholder; but such corporations shall be subject as other