Page:United States Statutes at Large Volume 44 Part 1.djvu/1997

 1983 iz ‘ TITLE 26.-#···IN TER `persoias to the tax upon Ftheir at->t· ipcome from interest, dividéudgkgnd  • _    ~, { 5 i  _ (13) In. the casefot a person, amounts qistributed as qivi· t dends to or for his ‘be¤é§t by ·a._corpornt.iou_ organized under the _ Chip; .T1'8d€· Act, 1922, if, `at theftime of auch Ldistribuitiom he ° ié a` `resident of China, and the equitable right to the iueoiing of the shares of stock of the gécrporafion is in good faith vested in. (14) In the case of an individual citizepof the_United~ States, · a bona Ede noaxjesidept of the United ;Stgtes for more than git months`,duri;1g`the·taxab1e year, amounts received from sources · ` withmit. the United States it such amounts constitute earped iueoxpe as defined. in section 209; but suc}; individual shall not be allowed so a deduction from hié gross income any dedtic-t fions op1T0pel'%Q8!l0¢¤ble to QI Qhargeuble agaipst amounts ex; eluded from gross income undenthis paiaagraph. · . - A · (c) Ia the case ot a nonresidentralien ipdivgidual, grosé ineome meai1s_oi1ly.the gmsa income from sources véithiu the United Stht_g;` deterinined under the provisionsof section 217. _ (Feb. 26, 192Q, c. 27, 5 213, 44 Stat. 23.) ' -` Seenote at·begip¤i¤g·ot this chapter. ‘ _ 1 A _ ‘· This tit¤Ie·" mentioned in the text constitutes c. .1_9 ot this sup- _ . plemeatattitle. ·"Sectio;s' 209,212, 217,jud 233,. mentioned in; the ‘ text, are act oat ipjf 940, 953, {958, and 985, respectjyely; of this · supplemental ~ titlej .'1‘he Federal _Fa,x·m 'Loa_u_ Ac? as ameuaea, rereered tojsereln, is. set out in cha. 7;_8, n¤_d -9 oftitle 12, BA§K8 - nm Bnmnia. The ‘World· War \Teter¤us’ Apt, 1924; mentioned in me text, is •et·‘o¤t_ip c. _10 ht Title 38, Pmxsroup, Bquusps Ann \’»:·m:a.ms’ Baum. The Chlnairade Act of 1922, mentioned in the text, is éet out in c4 4 of "1‘tt1e_15, Qoummcp mn  . · _ 955{ Computation of net inccmeideductions allowed.?-·(a) In eompptjgg uetiueome there_shall· be allotted as dedu‘ctions‘.:. · " Ordiatzry ea.·pcn.acs_`eZ¢écunred` durinj taxable year; ealarwa; traveling e;vpenaeé,>—·.(1) Alf the- ordinai·y_ and necessary expei1ses'paid or incurred during the taxable year in carrying on any `tiade Ol? business, l including {l.°"1'E!1S(tIiHb1€ allowance for salaries or other compensation for ‘pe tsonal‘ serviceé_ actu5l1y_ _ rendered; uravelingt expenses (jnclaiding .the‘ »euth·e amount expended for omeats and lodging) while away, from home ine the pursuit of a trade. or business; and‘rentail_sJ or other pay- · meats required to be iuaile as a condition to the`c0uti_nued use or poswsaion, for` purposes of the trade `or business, ofprop- - erty to which the taxpayer has- not taken or is not tbklng title . oi· in wl1ieh.·be_has mfequity; · Q _ ‘ ._ · I Interest paid or accrued, dur¤in.g> ta.1:ablc_.year;x awept·i0n.·-Q- (2) ·Al1. interest paid or accrued within the taxa le year on imiebtedrim excegt on iudebtednem incurred or outinued to QllI‘(?}i8S€·0i‘ carry obligatiouaor aecziritiea (otherf than 0btigap tiong of the United States issuegl after September I 24; 1917, and` originally siabscribqd for by thetaxpayer) the interest upon which Ls wholiy,exempffz·om taxation; upder. this title; a Taxes ·pa£d or‘¢mcr~apd during ·ta.z*q-ble' yea·r;—-— 3)· Taxes paid or aeerued witbip the taxable year ekéept income, warprodts. and excess-pmtits taxes imposedby the authority of the United States; _(B?) so muah of the ipc0i11e,‘wa1·—proiits, and · €X£S€SS·{)l‘0fit$ taxes, impowd ‘by" the authorité of an? foreign; country or posseséim1°of_ the. United States, as is allowed as 8] Cfedit —umler section 222; (C) taxes assessed .agai¤st· local" bezxefitg ot a kiid tending to increase the value ot the property _aSsessed,_ and (D) taxes imposed upoir the taxpayer upon his ` interest as shareholder of a ebrpomtipn, which are paid by the C0?D01‘Hti0I1B%’i§h0ut.1‘BiIDbU?$€lB9~Ht froiu the taxpayer, For the Dm‘1>0s;e of thisi paragraph, eatate, inheritance, legacy, nad gmeesaiou taxes accrue on the .due date thereof except :1s‘otherwise_ _‘ provided by the_law‘0f the jurisglietiim im_p0eing‘ such UQXPS; Losses sastaiozedadudng ta-xablc year and act- compensated.-·— (4) Loseez-s_sastaiuék1.during the taxable·yen1·_ and not com- ‘ `D'@!1$€1t€d for by·ii1sm·auce O1’·0ul€i’\Vi%,'~ it iixctirred iii tradé mj business; '

NAL REVENUE. I §955 Some.-(5)  sustained durlni the taxable ywr and not compmsated for by _ insurance or otherwise, it incurred S Y in any transaction entered ‘into» for pront, though hot connected with the trade or business; but in the msc of anon- ` resident alien individual only it the proqt, if such transaction _ had resulted in a- proilt, woulds be taxable `under this title, g No deduction shall be allowed under this paragraph. 1or[—any" · IQ88 claimed to have been sustained in anysale or other dis-. t position. of shares°ot stock or securities where lt appears that " within thirty days ’beiore or after the date of such sale or ‘ other disposition. theltaxpayer me acquired (otherwise than by bequest or-inheritance) or has entered into a_ contract or option to acquire jsubstantially i,dent·ical property, and the · property so acquired is- held by the taxpayer lor any period l after such sale or other disposition.— It such- acquisition or the contract or. option to acquire is to the extent not part only ot_ substantially identical property, then only a· proportionate part of the loss shall be disallowed;. T _ ’ t Q ‘ - Losses from fires, stomw,· shipwrecks, and so forth.-—(6) sustained during the taxable year of property not connected`_ with the trade or business (butin, the `casefofla neonresidentj alien individual only property within the _ United, States) .··lf· arising from fires, storms, shipwreck, or other cass ualty, or from theft, and it not compensated for by insurance or otherwise. The basis for; determining the amount of the. deduction `under this paragraph, or paragraph- (4) or_ (5), shall be thesame asis provided in section  for determining _ the-gain or loss from the sale or other disposition ofproperty; Worthless debts charged off wi»tM·a·‘to.ra-ljlo peer; debts re- ‘00]j61TGbl8~ in part.-(7) Debts ascertainedto be worthless. and charged oft within the taxable year (or, in thediscretion of the commissioner, a reasonableaddition to a reserve for bad debts) ; and when satisfied that a debt is recoverable only in. part, the com—m;ssionei* may allow such debt to be charged on in part;, [ `- ·``_ .j t   ,._ Ea5h,dustion,· wear and tear ;_ obsolesce·nce [apportionincnt].-——(8) A reasonable allowance for thef-exhaustion, wear and, tear of property used in the trade or business, including a- reasonable allowance for obsolescence. In the case-_ of iniproved real estate held by one person ior life with remainder. to l another person, the deduction provided for in this paragraph shall beyequltably `apportioned between thelife tenant and the `remainderrnan under rules and, regulations prescribed by the commissioner with the approval ot, the Secretary ;_ llllinca, oil and gas uvolle`; depletion and depreciotwn.-—(9} .In the case of mines, oil and gas wells, other naturalldeposits, and timber, a reasonable allowance for depletion and for de: preclation of improvements, according ·to the peculiar condi ·_ ·tions in each case; such reasonable allowance in all  to he made under rules Qandregulations to be prescribed by the cone ntissioner, with the aptproval of the· Secretary. In the case of leases theg·deductiox$,`allovsred by this paragraph shall be - equitably apportioned lbetween the lessor and lessee; "_ _ 3 a _ Gonlrtbutiom or g£fts;————(10) Contributions . or gifts made within the taxable year to or for the use of .: (A)· The United States, any State, Territory, or any political subdivision thereof, or- the District ot Columbia,. for exclusively public purposes; (B') <*a;ny corporation, or trust, or community chest, fund, » or foundation, organized and ,opernted exclusively for religious, charitable, scientidc, literary, or educational purposes, or for the prevention of crueltyto children or animals, no part of the , net earnings of which inures to the benetlt of any private shareholder or individual; (C) the special fund for yocational rehabilitation authorized by section 7 of the. Vocational Rehabillts} tion Act; (D) posts or organizations of war veterans. or aux- illary units or societies otjany such posts or organisations. if such posts, organizations, units; orsocietics are organized in the United Stntm or any of its possessions, and- if no part of~thelr
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