Page:United States Statutes at Large Volume 44 Part 1.djvu/2005

 1991 T{TLE 26.-—;INTE 956. Deductions allawablc in computing net imzome.-·-(a) In wmpxiting the net income at a ccrp¤raii0‘a·_subject to "the tax, qmpoged by ae-cticn @0 there shall Jbé alicwéd as deductions: Oraincry and anwrasaary ezpeud£tw·c .€acun·ed dufing taxable ymr; sa-Iar£e~8’,*' ré»1'¤l8.-—(1) All the Grdiuary and neceasaxiy Gxpgugea paid cr jxwurred durixig the taxable year in cam·yiug_ an any ande pr kqusiness, inclpxding a reasonable?-allowance for salaries or ether. ccmpeusadqn Tor per-:-mnal services actually “r6mlvra€l, ami including rentals or other payments requiréd ti) `lae mangas ,a condition to the continued use or- possession of pmperty to which the corporation has not taken or is not tak? ing Lit1a,)m· in which it has no equity. V j ‘ . I;1t€r€xt»pa¤<i¢1 or cwcrwed within taxable year.-—(2) All intgerpat paid at 8CéZl'l1€d‘ within the taxable year `ouits indebtedness, i exept im inéllebtednws incurted or éemtinued to purchase or marrry obligations 0§_;__S€Ci11‘iti€S (other than obligations ot the mm;. swag ·1a·;¤q’q1 afte1~Septamber'24, 1917, mm pngiuauy énibscribed for by the _ taipnyer), the intemsgupon which is wha1ly.£eXeEpt from taxation under this title; · — · ` Tara: paid cr wand nqithin Vtaagablc ymr.———(3‘). Taxes paid or accrued within the taxable year exceizt (A) income, warfprgats, aaa. excawqmmca taxa imposed by the authority of the United Stata, (B) so much _ c£ A the — income, wa1·—p1·0Iits`apd excass·p1·0§ts taxes a by   authority oi any ; toraign country `cr  io¤ ’0£»·the United ’ States aa is alldyved as a credit made;   @8, and _(G) taxes 'aaaesed agaiugt local benefits cia kind   to iuc_rmae:_the vaiue of  assewwi In me   as cbligcrs `qgadded h§\gzbdiviai»o¤ (b) of sectian   no deduction tar the payment u He tax imposed Hy my um, cr,   J cmg: tu paid mgmt to the mx-rm ecvaaamz dame, @1131- be allqwadkmr shall inch tax be included 11% the gran   at the   The deduction auowed by this   shall be *a1l6wed,i¤_t.be $(288 of taxes imposed upon a mywlcm ot.;  upon   interest as spare haldwch a uma  by the corporation without reimbursemeat     the ahawlder, bmi in such éasas po deduction shall be `a11§¤weéa_thé  {cr the ammmt ct such taxes. ~ F9: wc  ct   parégrag, estate;. inhéritance; legacy, and mc%ién taxa: mum an  due Este thereof except as otherwise provided by law of the jmitdictiou imppaing such mma;. , (4)  during   taxable sm: and not com-· tm- by. ms Gtherwisa. No deduction shall be aaliéwml uma: this  tar any ms] claiged tb} havé hem  in any mia ar cthaz dtwositian ¤(a sharw af S stock     ybcraé it Appears that witghiu thirty days mam cr after than date at   gale or other `dispcaiticm the tumyar .31   acquirm   than tgya bequest or inherit4*    into a mmtmct " or optiqa to acquire suba { mia adasacd  nr  , nad g_.ha_jpmperty no acquired is had bi   iiwyyer fm" my pcrivd after §¤&· mia or othar Giwvsiden,   m& alum is mda by s dealer in amok cr aeeurmas pad with   Qc n mnnctibn made in the aidinary   agim   It such aaquiaitiem or tha contract , -61* optian to   is to tha extapi of .pai·t only of si15·· stantiaily. idgntiql     amy a, pmporucnatex part  at the im shall be disallswisd. The   for damrmining the armuat at the déguctmn tag      had shall he the mma as ia »prov1ded·1¤.ae¢¤¤¤   fm   min qr was from the sale ag ether éjsmidau at Brvilerty;  aWQ`r¢#less delhi: chéfyd   within. ¢aa=a· bIe_ ymr; reserve fw had debts; debt:    a    in pa:·t,·————·(5} Debm ascertained to be  w»0rthim 811d'Ch81:gBd a! within thamxablé year (or in- the discra¤c¤ at the éamxsatauag, al raamaabla additiog ~· $0 é reserve Imgmd da1;ts)»;° am} when `satiaaad that n   is 1‘¢€<>v%;·abie amy in mn, cha  sx  a=  a      cna: may shaw au& debt} a mbe'chal·~ged ciiiumxrt;  ‘ _. 9 - Dhyieicnda rccaiveél.-~—-(6) The- AEIOIIBCD received as dividexids (A). f;jom a domaatic ,.cc1,·p0ra£i0;1 other than aa corporation

mzmzz REVENUE ·, §986 _ entitled to the Qbeneflts of section 262, and other than a oe1·· poration`“organiaed under the China Tradi Act, 1922, 'or · (B) from any foreign corporation when it is shown to the satisfaction at the commissioner thattmore than 50 per eeatum of the g1‘€>SS HICOIIIG of st1<211_f6reig1;i corporation fer! they thfetryezlf _ pel·;oo ending with the close of its taxable year preceding the _ de¢la1fation of such dividends (or for such part of such period `¤8,the foreign corporation has been in existeilee) was derived from sources within the United. States as determined under see · tion 217;  ~ l, · ~ Ezltaustion,. wear and tear of propertm obeo1e3¢mé€·——-·(7) A reasonable allowance for the exhaustion, wear and tear ef property used in the trade or business, including a reasonable, ’ allowance for obsolescengei; _ G ’ _ Q . Mime, oilxmd one wells; depleiiohz oecd depreeiotieqr..—e(8) In the ease offmiues, oil and gas e·e11S,.0am·· natural deposits, 8.I1dQ_tjr§1b€1', a reasonable allowance °for depletion and for ee- V; preciation of improvements, according to the _ peculiar treaditions in eaeh ease; such reasonable allowaneeia all eases to be made under erales and `regulations to be prescribed by the comaxissioner with the approval; of the Secretary,  In the eaee of leases tliedeductibns allowed by this paragraph shall be equit- _ ably apportioned between the lessor and lessee: » 3 _ ‘ ‘ _ Inhurunco companies (other Jima lite taserenoe   ; h additional deductions.-(9) In the ease of iaseraeee companies (other than life insm·a;1ce.eompat1ies), in addition to the __above (un1ess otherwise allowed): (A) The aet addition re— `quired by law to be made witlxih the taxable ear to reserve funds (including, in the case of `asae&me¤t insurance `companles the actual deposit of sums with State er Territorial omcers pursuant to law as‘ additloosi to guarantee or reserve Imids) ;, and (B) me sums other dividends pale within the taxable ymr on policy and azmulty contracts; Tlxis paragraph shall apply only"to mutual insuranee eompaales other ( than life insurance companies; l ._ . . Mutual mariae émaraace oompeesies; additional deductions.-- (10) In the ease of mutual marine insurance} eompaales, . there shall, be- allowed, in addition to the deductions allowed la paragraphs (1) ‘ to (9), lnelesire, unless otherwise allowed, amounts repaid.-to policyholders on account of premiums previously paid by them, and interest paid upon saeh`_ amounts = between the aseertainment and the payment tlxereoft . Mamie! insurance ceazpeeiea reqeairtng preaaéam depo.s,.ta.-———— '(11`) Ia the ease of mutual insaraace·»corl1p~aaiesl (iaeladiag iaterimsurers and areclprocal ahclerwriters; but not including mutual life or mutual .mari ae insurance companies) requiring _ their members to make premiuai deposits to provide for leases o and expenses, there shall be allowed,\i¤ addition to the dedtxetions -al1o‘wed, in paragraplxs (I) to,(9), iaelusire,_,ualees‘ o,t~aerwise allowed, the ametmt of premium, deposits refereed to their “ ~ polieyholders and the amount of premium deposits retaioetl for the payment of 1osaes,.expe¤aea, and reinsurance reserves. L Darkwteioae allowable only `te aston.: of anew within Uaiieei ~* Stoteae-——(b)_$;Ia, the cm of glgrreiga eerporatioe or of a eorporation entitled to tl1»e,_)be¤ea e of section 262 the dedoetioas allowed in subdivision (a) shall be allowed only if and toft.lie·> extent that they are ooimmted with ieeoroe from aoarezsee withio the Unitede States; and the woper apportionment and alloea— tion of the ededeetioas with respect to soarcm within and wit;h· out the United States shall be determined as provided in seetloa 217 under rules and regulatloxis { p·reeeribed’ Hy the eemmisaioaer with the approval of the Secretary. (Feb. 26, 1926, c. ,27, .§ @4, 44 Stat. 41.) K q " . · Bee aete at beginning of this chapters . » ~.’ "Tl1ls title," herein referred to, eoaatltutee e. 19 of this sup- ·· plemetntnl title. (Phe. China Trade Act ot 1922, meatieaad ia the _ text, eonsfltatea e. A ot'“Title 15, Commaca 4xe_'1`aar>¤, Seetione ‘ 204, 2H, 221, 230, $38, nad 262, mentioned la the text, are net mt ia it aaa, aes, 962; 981, 990; aaa 1080, rwlieétiwely, et than supplemental title. — `” ‘ o