Page:United States Statutes at Large Volume 44 Part 1.djvu/1998

 §Q56 TITLE $6.--INTE1 net earnings- mums fe we benefit of any private shareholder or c indiy1dna1`;:or (E) g batman! baeiety, erdé, or operating under the lodge system, but cum if meh eonmuunm ` or  aretb be ®&‘ exduglvdy for rdwoué, charitable, x scimtlue lzlternry; or educatlenal inurpom or for the preventtion of cruelty .1:6 children or animals { to an amount which ini ‘ all the above  combined does not exceed _·15 per centum of _ the taxmyefs net. income as computed yvityut the benedt of this `pnmgaph; eicept that if ln' the taxable ymr and in each of the ten preceding taxable years the amount in all t*he,above mw ccmbined exceeds 90 per centum of t11e.g;axpayer*s_ net income for meh such year, as computed without the beneilt of - this paragraph, then to; the full amount ‘ of such contributione if and gifts made within the taxable year. In cane. of a nonresil dentalien individual. tliist deduction shall be_ allowed only astto contributions or gifts · made_`_to domestic cornorations, or to eohmunity chests, Wfundg, or fpundatiohe,  in meunxxec ._ States, oi to such vocational rehabilitation fund. Such contri-. buttons or gifté Shall be ¤111;»wa¤1¢" as deductions only if verified under rules and regulations. prescribed ·_by= the commissioner, with the approval of the Secretary. ‘ · · _ . ., Caéual bale of real `prog$cg·ty.;la·lL0w’ance for future aaépense l ?ia¥hiI~f!·y$cs.—y—(11) in the case of a casual sale or_ other casual oxliepqsitiefx of real property, a reas_o1iabl_e allowance. for future .expense·liabllities, incurred under the. provisions of °the_ contract ‘— under nvhich éuch sale or- other disposition was made, under such regulations as the conimissioner, withthe approval nf the Secretary, may prescribe, including the giringn of a bond, with such suretiesiand in such sum (not less: than the "e¤t·imated_t_nx - liability computeclwithfout the benefit of this paragraph)" as"the - commissioner may require, conditioned upon the payment _(notwithstanding any` statute of limitations)- of the tax, computed without the benefit? of tllisparagraph, in respect of any amounts allowed as a deduction under this paragraph and not actually ·cxpended_in carrying out the_-provisions of such contract.- __ - Nom·c.sident aliens.-g-¢(b) In the case of a_ nonresident alien individual, the deductions allowed in subdivision (a), ejcept those allowed `inh paragraphs ° (5); (6),»and ‘,(10), shall, be allou·ed,only if and to the entent that they are connected with income from-sources within the_`United States'; and thexproper apportionment and allocation of the deductions with `reapect to sources of _ income `_ within and jwithout the United States shall be determined as prorided in section 217_ under rules and y` regulations prescribed by the Commissioner with the c approval of the Secretary. In the case of a citizen entitled tn the lienents of section 262 the deductions shall be the same and shall be determined ’in the same manner as in..the` case of n nonresident alien- individual, ..(Feb._ 26,. ;l926, cl. 27, .§ 214,} 44Stnt.26.)“" ” ‘  ‘  See note ntl beginning. of this chapter. - "'I*his tltle" herein referred to conatituteac. 19 of `thjs supplemental title. Sections 204,..217; 222, and 262 mentioned an the text are set out ii! S! 935, 958, 963, and 1030, respectively; of this supplemental title. _ . _, · . - : ,956.‘ Same; deductions not nllnwed,———( :1) In computing net income no deduction shall lin any case be allowed in respect of-? . (1,) °l’ersonal,’living,_or family expenses: .   _- -. (*2) Any_arnount' paid, out for new buildings or for perma- »m·ntqi1np1w»x*ements” or betterments made to increase the value nf any property or estate;. -— a - · ~ · (3) Any amount -lexi>euded in restoring property or in making good the exhaustion thereof for which an allowance is or‘h‘as l>eenln_nde;or ~·. ‘ ° _  ` (~1)j Premiums paid on any life insurance policy covering the life of any odlcer or employee, or of may person ’ilnanclally· lngterested in any trade or buslness carried on by the taxpayer, whenlthe taxpayer is directly or indirectly a beneficiary under such policy. l ~ __:

BNAL REVENUE _ 1984 (b) Auicunts paid under Jthe laws of lm! _ Staten Territery, District of Golumbia, peaseséicn of  United States, or foreim country _ ga inbcme   tlie holds? of a lifé at terminable interest acquired by gift, bequxt, or inherit¤.nce.sha1l not be. reduced or diminished by my dedectlcxi fer shrinkage -(by; whatever name called)- in the value of such interwt dueto the lapse of time, ner by any dedgcticn allewed by thisVAct for ~ the purpdse at ecmpudng the ¤et_·inc01§e~ef ah estate or trust but not allowed under the laws- of smh State, Territory, Digmee or Gfolumbm, ·pmes§1‘¤¤ or the Ueltee states, or rmagu ‘ couutry,;'or the purpose of computing the incc e to WhiCh·-Such, h0lde1·_·is»eutit1ed. (Felt 26, 19%, »c'.  § 215, 4i!.Btat.‘ 28.) l ° See nate ‘at_‘beglnui1lg bf this' chapter. ° _ _, 7 ••-This act," herein retenjred to, genstltmcs, thy supplemental tiuB. . " " é _ = _ · _957.· C;·edits.fallowed, for npufpose of nermal tax.—Fera· the pm·po.sel of the normal tux  there phall `be allowed the following credits :`   · ` . `,     _ V- (a) The ameuiat. received as diéideznde (_1) trauma demestie. c0rp0ration‘.0the1··· than a .c0rppl·al;i0u entitled to the benefits of section 262, and other `thaxi a cetporation oigaaimd `u'mlez· 1 the China Trade Act, 1922, or (2)   a foreign cerpergxtien `wheu it is Shen- ter the .satistacti0=zi at the Cbmmissleuev they m0re_tha1; 56 `[ier C9I1t\1Il1_0f.thé gmx iucomepf such foreign A c0rp¢g>ra_tiqn· for the three-year period ending with the close tl? _its taxable year preceding the declaration dl  dividenek (or for--such part of such period asthe corporation has been; in existence) was derived "fmm smxrces within the United States as. detérminéd under the provisions bf  217 ; ~ " (b) The aniqunt ;·e¢elved· as i¤té_restY‘¤pen obligations nf the United States which is included-in gross iucmiie under sectieh (c) `In the case of a $=l}1gle.pei·s0n, a personal exemption af $1;.500; or in the case ot the head of a.family_0r”a.marrie<l person. living with husband or wife, a__’permnal exemption of $3,500. A huabzlnd hm] wife.aliving-tegetlner shhll receive but {me personal e1femptiqn._ rrné_·ame¤¤ta_l¤r~Sueu personal exempt . " tion shall be $3,500; » If such husband and wife make sepamfe returns; the personal exempti0¤·_ma`y be taken by either er divided-between them. ” _ _ _ _ _ _ · ` `(d)·$400tfm· each person (0tlnei· than hushand na- wifel depexxdentjupgvn and recejying his chief supp0rt—from the taxa payer ifamsh dependent_pé1·$<m is mailer eighteen $·e¤u·s_cf age or is incapable of self-support because mentally or physicam-~ ·defective._ · - Y  _.‘   · _ · (e) In the case roflanouresident alien individual or of :1· citizen ·eutitled_ to = the .beneHts et section 262, t1}&dfl‘§}l}2!l . exemption` shall be only $1`?500.   credit provided in san division (tl) shall inet   allowed lu the case of a nonresident alien individual unless he  a resident at ·a "coatigucas commtry, ucv in the ease of acitizeh entitled to the beueilts of sect len · ’ T (f) "(_1) The credits allows;) by aubdivisiexis (cl) and ie) ¢»¤` this section ·;~;hall be eletermlnetl by the statuslot the taxpayer len the last qlay._<»t his taxable gear. R · ·.  (2) The credit allowed bi sabdivisiou (c) ot this seetien Shall, in case the status of the taxpu$’er changesndtirlng bla taxable year, be the sum of (A) art ameuhtwhleh hears the same ·rati0 to $1,500 aa the- Ynumberl of mouths during which tlw taxpuyer~·`lw_as SlX1g]·€·b€’&l‘S to twelve. m0uths;‘p1us (B)“_a1ll amount which bears theTsume ratio to $3.500 as the mgnber of. mmlths during: which the taxpayer {vas uémarrtied person livimf _' with hqsbahd or wife or was the headef il family hears tv twelve months; For the purposes of this paragraph ag fl'8Cfi0Hi\I part of a monthishall be mlieregafded uhless it amounts tu there than half a month, ii; which case it shall be eéusidéred `as :1 · mtmth, " i