Page:United States Statutes at Large Volume 44 Part 1.djvu/830

 § 955 § 1*12*1Ju :20.--1NTl belonging to such foreign govermnonte, or from any other source within the United' States; p, _ (6) Amounts received, tlxrougln accident or health insurance or under wog·kmon`s compensation acts, as compensation for personal injuries onrsickness, plus the amount of any dam- ` ages received whether by suit or agreement on nccountfof such injuries or sickness; I. (.7-) Income derivedfrom any public utility or the ekercise ’ of any essential governmental function and accruing to any State. Territory, 01- the District of Columbia, or any political] subdivision of a State or Territory, or income accruing to the Gt1\’€1‘llI]lt?Ilt of any possession of the United States, or any political subdivision thereof; · _~ `; · ‘ { Whenever any State, Territory, or the District of Columbia, or any political subdivision of. a State or Territ0l‘y,_ prior to September 8, 1916{ entered in good feith, into a contract with any. person, the object and purpose of which is to ncquige, construct, operate, or maintain a_public.utl1ity—- · _. ‘ _ {A) If by the terms of such contract the»tex imposed by this chapter is to ‘be paid out of the proceeds from the operationof such public utility, prior to any division of such proceeds between the person. and the State, Territory, political subdivision, or the District of Columbia, jand .if, but"for the imposition of the tax imposed by this chapter, a part of such proceeds for the taxable year would accrue dlrectlyito or for the use of such State, Territory, pol,it1cal» subdivision; or the District of Columbia, then a tax upon the net income from the operation of e such public utility shall be levied, assessed} collected, and paid in the ‘manner_ and at the rates prescribed in this chapter, but there shall be refunded to suchi State, Territory, politiml subdivision, or the‘District of Columbia (under rules and;. regulations to be prescribed by the Cojnmiseloner of Internal `Revenue with the approval of the Secretary of the Treasury), an amount which bears the some relation to the anxonnt of the tex an the amo1int_ which (but for the imposition of the mx imposed by this chapter`) would hnve accrued directly to or for the use of such State, Territory, political subdivision, or the District of- Colun1bia,» bears to the amount of the net income from the operation of such public utility for such taxable year. ‘ ’  · .`  (B) If by the terms of suchfcontrnct no perf of the proceeds from the operation of the public utility forpthe taxable year would, irxjéspective of the tax imposed by this chapter, accrue glirectly to or for the use of such State, Territory, political ’ subdivision, on the District of Columbia} then thetaxupon the net incogne of ouch person from the operation of ouch public utility shall be levied, nsscsned, collected, and paid ln the mhni ner and at the fretee prescribed, in thiechnpter; Y _ . (8) ·-The income of at nonresident alien ,or foxjelgn corporation winch consists exclusively of earnings derived from the qnerntion of e ship or ships. docummted .l1I}dB1l' the laws of e foreign country which giants on/wnlvelent exempyme to citizenoof the United Stetes end to corporations organized in the United Statm; » · n  U n ’_ t {9) Amounts; received as compenmtiong family allotments end allowances under the provisions of chapter 10,~ of Title 38 (the World Wn: Veterans? Act, ‘1924),·or ne  from the United States for service of the benenclnry or another `in the military or navel forces of the United States in tixnoot wer, or ee n` State pension for services rendered by CM bononcimry or another for which the State is paying s. pennong . c (10) The axnonnt. rmlzed by en elndlvldnnl before Jenner; 1, 1927, as dividendo o1·_lntea.·m from domestic bnlldlng and loan associations, snlwntlally all the btislnm of which is contx   to making loans to menbers, Init the amount excluded from gross income under this mrngraph in any texeble year shall not exceed $00 ;` — · · i

ERNAL REVENUE SHP ,`\ · (11) The rental value of ft dwelling house and appurtenzme oa thereof furnished to a minister of the gospel as part of lm - compensation; ‘ (12)_ The receipts of ship~owners’ mutual protection uml in- · demnity'asso<:iations, not orgzmized for profit, and no part of o the net earnings of whiqh inures to the benefit of amy privzm. _Sl1$iI‘€l`h0](]€l.°`§ but such corporations shall be subject as o:m·g· » persons to the tax upon their not income from intereet, dlivi» · dends andrents.; - `. _ · ‘, (13·) In the case of.a person, amounts distributed as divi- ¤ deuds to or for his beneiit by a corporation organized unqlop · sections 141 to 162 of Title 15 (the China Trade Act, 1922) if, at the timeof such distribution, he is a resident of China and , the equitable rightto the .iucome of the shares of stock of the b corporation is in good faith vested in him. · _ (0) In the case of {nonresident alien individual, gross he ~ come means oiily the gross ihcome from sources within the United States, determined under the provisions of section 958. 1925, c. 345, § 12, 43 Stat. 997.) ‘ ‘ J * ~ ` b · Q5? Computatioxi of net income; deductions allowed.·——{:¤> . In c mputing het inoome there shall be allowed as dedm·tim¤s: ¤ I Ordinary expenses _ incurred during taxable year; aalariesp o travelingl expertsesr-—( 1) Al1`tbe ordinary ahd neoessarywx- ·. peuaes paid or incurred during the taxable your Lin carrying on » any trade or busineae, including a` reasonable allowance for J aalur/les or other eompensntion fo1‘·_·})0l‘S0ll&l serrices actually b rendered; traveling expenses- (including the entire amount ex- , pended for meals__and lodgihgl while away from home in the , `prfrsuitof a trade·or·business; and rentals or other myments l required to be made es u, condition to the continued use or ’ possession, for purposes of the trade zgr business, ot property w to which thetaipayer has not taken or is` bnot taking title or in ¤ ‘· which he·hp_s nokequity; _ _ _. _ · _ Interest paid or acérued during taxable year; excemiaawl (2)` All interest paid or accrued within the taxablefyear od indebtedness, `except on indebtedness incurred or continued to purchase or carry obllgationeor securities (other than obligations of the United States issued after Septembw 24, 1917, and originally subscribed for by tbe·_ta_xpaye1·) · the interem awa which ia wholly exempt Yfromp taxation under thia title; ’ e Taxes paid or acerued daring taxable year.--(3) Tum mid ` or accrued within the taxable rear except (A)-, lncome, warprofits, and excea=s—pro¤ts taxa imposed bi the kutborlty ot; l the. United States. _'(B) ao much ot the income, warproma and exceeeprodts taxes, imposed ·by~ the autbo.rity_ ot any torelgn coixntry or possession ot the United States, ua ie, allowed aa e credit under section; 9®,ot title, (O) tnxm • d  r local bcneiita ot a kind tending to increase the valce ot the property assessed, and (D) taxes mpomdltxponl tm taxpayer upon bla intereat as pbareholder of a corporation, · which are paid by-· the corporation without relmbarmment from the taxpayer. · For: the  ot this   mtate, lxlheritamce, · legacy, and succession taxes accrue on they doe date thmeot except as otherwiao prorided { by the law ot the jurisdiction impmingsdchtsxu; _ ·. · - ~_  Q, Losses mmined during taxable iear and not compennfed.-·—-· (44)   sustained during the taxable year and not eompegsatx for by inmraxxce or otherwise, lt incurred in trade yorbusluewy V ··, »- · Same.·———·(5) Lowauatalned during the taxable year and not eompemmted for by msunmco or _ otherwim, it incurred- in any _ transaction entered into for prom, though not cohnected with the trade or bestow; but in the  ot ( n ident allen individual only it tm prom, it sinch     auction had rmaltw _m ¤ pxoht, would be mann mae: the   No aeeucmm my be mom me dm ‘p¤¤gmm m- any' we denim;
 * (June 2, 1924, 4.01`p. m.,. c. .2§4, § 213, 43 Stat, 2G}; Feb. 26,