Page:United States Statutes at Large Volume 44 Part 1.djvu/831

 S}? TITLE 26.-—INTEJ ga lmve been sustained in any sale another disposition of allares M stock or securities whereit appearsthat within thirty days l»·f·>re or after` the date of such sale or other disposition the taxpayer has acquired (otherwise thambyzbequest qr iuheritam-) or has enwred into a contract or option to acquire subezmtially identical property, and the property so acquired is_ laid by the taxpayer for any period after such, sale; ofother ¤%i-p<»sition. It such acquisition or the contract or option to t tuquire is to the extent of part only of substantially identical I,,·,,pt·;·1y, than only aproportionate partxit the loss shall be disallowed; _ - _ _ ` Leases from fires, storms, shlpwrecks, and so forth.-—-(6) ~I,g•sses sustained during the taxable year of property not conmétcxi with the trade or business (but in the case of a non-r rt·sid<·nt alien individual only property within the United] States} if arising from tires, storms, shipwreck, or othericasualty,, or {rem theft, and ji not compensated for bylxnsuramce or mherwise The baais for determiaing the amount of the de-» tlmtian under this paragraph, or pa_rdgr.aph (4)__ or ("5),`shd1l bathe same as ia provided lu section 935 of this title fqf de·` términiag the gain or loss from -the_sale or yqther disposition af m*<>¤<*¤y: · { · " · VVorthless`deb=tg_4 charged cd` within taxable year; delits recoverable ia ap•rtL4—(7) Debts ascertained. to 'be_ worthless and charged`01I·w¥itlaig the taxable year (or, ih the- discretion of the mmmissieaer, af reasonable _ addition to a_ reserve for bad ¢ debts); and when natiaded that a debtis recoverable only in l pact, the commissleaer may allow such debt to be charged oil? in part; ‘_ _ _ · Exhaustien, wear and tear; 0ba0lescence.—4(8) A· reasonable l alldwauce 1'erxhe exhaustigu, wear and tear of property used.} ln the tradejpr business, including a reasonable alldwance for € tubsalwceaee ;A ·_ ‘ - A _ Mines.; eil nad Qu wells; depletiea and depreciatie¤.—·-(9) Ia the case of mines, Qoiland gas wells, ether natural deposits, and timber, a reasonable allowance for depletion and for- depreciatiqa ot improvements, according to   peculiar conditions, in each case; such reasonable allowance in all cases ton be- made _1mder mlea and regulntioai to be prescribed by the comfaissiemer, with the lapptcval of the Secretatyf In- the case cth leaa¤,they_ded1ictieh allowed by this paragraph shall be equitably aspcrtiehed between the lease; had lessee; z ` Ceattibatiena ae gifts.--(I0) C0ntributi<ima‘ dr fgifts made within the taxable year to or tc: theuse ct: (A) _The United States, any State, 'i'errlt0ry,_ or · any. political, subdivision thereof, 9;* the District ;c£ Columbia, fo11·.’exclualvely· public purpesu; (B) any cerporatiea or trust, qt community chest, {and, or teaadatlca, _0rg¤ai;ed and operated exclusively for religious, charitable, scientmc, literary, of educational ’ pur- er ter the preveatiea at cmgty ‘tq callclgea or animals, ne part ei the net earnings et wlalehllaévea to the benefit of nay. private shaqelnelder or jndltldualy (Oy the épecial {und for vocatleaal rehahilltatloa authorized by section 440 at Title · 38; (D}  or Graaianticmet warlveterans, crauxlllary yaaltaaor wcietiu of any  pest: my forgnaizatlqua, lf. auch. units, or aocletim are organised ln the United Stats or, any et its i¤na, and it aaqaart pt their net earnings  to the benwt 65 nay private shareholder or individual; er (E) a  society, order, cr associatiea, epefating ‘ under the lmge syste&, but eniy lt puck com tributieas e; gifts are- to be med exclusively fer rallzlcus, charitable,  literary, or   `puipeacs, or for the pareyenttoa ct cruelty td  er      {ai to aa amount whicbma1lthe1b01ac•mcemblnodd¤e•aatexeaed15pe:j ceatamct the taxmyefa aet  as cemmt& witheat me beaem at this paragraph, except that it ia the taiable year and in each at the tea  »   _   years the amcuntiln · 8&7$’··;——;2$-·-·-62l ‘ ` 4

rczun REVENUE § 957 all the above cases combined exceeds 90 per centum of the taxpayer?. net incoxne for each such year, as computed without the benefit of this paragraph, then to the full amount ot sueh oontributionsnnd gltts made within the taxable year. In case of a nonresident alien individual this deduction shall » be allowed only as to contributions or gifts {made to domestic corporations, or to community chests, funds, or foundations, created in the United States, or to such vocational rehabilitation funds. Such contributions or gifts shall be allowable as deductions only it veritled under rules and regulations prescribed by the, Commissioner of Internal [Revenue with the approval of the Secretary of · the Treasuryl .. ‘}1'onresident aliens.—#·(b) .In the case of n nonresident alien those allowed in paragraphs (5), (6), and (10), shall be al- 0 lowedonly if and‘to·the extent that they are connected with income from sources within the United States; and tlieproper apportionment and allocation of the deductions with respect. to sources of income within and without the United States ·_sh'all be determined as provided in section 958 of this title under rules ._and regulations prescribed by the Commissioner of Internal Revenue with the approval of the Secretnrygof the Treasury. In the case ot o citizen entitled to, the benents ot section 1030 _· the deductions shall be the same and shall be determined in the same manner ns in the case or a nonresident alien individual; (June 2, 1924, 4,01 p. m., 0.,234, § 214;_5£} ,Stat. 269.). _- _ _ ·  _ _ · 956{ Same; deductions not allowed.¥-—(a) In computing not inqome. no deduétigm sl1nll_in any case be allowed in respect (1) Personal, living, or family expenses; _ 1 ` _‘( 2) Anynmount paid out fornew buildings or for permanent improvements or betterments made to incrense_the_vnlne of any 'property lor estate;, » · ‘ , — ‘ _(3) Any amount expended in- restoring property or in making good the exh`austiou thereof for which nu allowance, is or ¥ has been ‘made_;· or  " ‘ (4) Ifremltims paid Qon any life insurance policy covering the life ol any odleer or_ employee, or of any personnnenciolly wMlntere`§tedK in any trade or business carried on by the taxpayer, when the taxpayer is directly orjndirectly`1 beneneinry under such policy!, J ’ ‘ e ‘ _ (b) Amounts paid under the laws ot nny State, Territory, · District of Columbia, possession of the United States, or 1for— eign country _) as income to the bolder of n life or terminnble interest acquired by gift, bequest, or inlxeritnnee shall not be reduced or diminished by- any deduction for shrinkage (by whatever nnrnecalled) in the value of such interest due to the lapse ot time, nor by nn! deduction allowed by this chapter for the purpose ot computiilg the not income of an estnte or trust but not allowed under the laws `ot snob State, Territory, District of Columbia, possession of the United States, or for: a eign country for the purpose of eoxnpntiug the income to which ouch holder is entitled. (Juno 2, 192·1;_4.01 pt m;, c. 234, § 215, 43 Stat. 271.). J · t t 957.,  nlkwed for purpose of normal tex.-e——For the purpose of the normal tex only there shall L- allowed the following credits:. _ - ‘ ·· M j `(A), The amount reeeived as dividends (1) from a domestic corporation other than e, corporation entitled to thebenents of ` section 1030 of f this title, and other than n corporation orgam. ized under sections 141 to IW of Title 15 (tho China Trade Aét, 1922), or (2) from at foreign eorporntion oben lt is shown to the eatlefaction of the comml@oner thnt xnore than 50 per ¤wtnnm·`of?the~eirmo lmme ot such foreign corporation for the three-yen: period ending with the close of its taxable yeer» the declnrnuon. ot noel; dividends (or for soon part
 * ·Iidiridual,' the deductions "allowed in subdivision (n), eieept