Page:United States Statutes at Large Volume 44 Part 2.djvu/56

 16 SIXTY-NINTH CONGRESS. Sass. I. Cnr 27. 1926. ”•°°” *¤ such conversion the law applicable to the year in which such conversion was ey; ‘ ( ‘ i o aeqxuee as stock. (11) I! · substantially identical property was acquired after $·°i`{i2a  December 81, 1920 in place of stock or securities which were sold or   of andin resplect of which loss was not allowed as a ·"°"·*‘°·"· "* deduction under   (5) of subdivision (a) of section 214 or paragraph (4; of su 'vision (a) of section 234 of this Act, the Revenue Act of 1921, or theitevenue Act of 1924, the basis in the case of the property so acpuired shall be the basis in the case of the stools or securities so so d or disposed of, exce t that if the repurchase rice was in excess of the sale price sucgi basis shall be increases? in the amount of the diiference, or if the repurchase §ice was les? :§8I31(g.8 sale price such basis shall be decreased in eamounto e 'erence. · ` s S·1e”gj¤k;;,<grr;¤*,g,y¤_;c=H (b) Theibasislfor determining the gain or loss from the sale iimiiais, on me or or other di sition of roperty acquired before March 1, 1913, ’·““"‘°"‘*“°· shall be (Asfqthe oost·o¥.sueh property (or, in the case of such propertyas isdescribed in paragra (1), (4),or &5),of subdivision (a), the basis as therein Lprovi edg, or (B) the air marketvalue “£,g*·¤¤*¤·¤¤¤ ¤* of such property as of arche1,11913, whichever is- greater. In ` determining the fair market. value of stock in a corporation as of lgazilch 1,191% dlue regard shall  givendto the fair market value o t eassetso t eco orationaso that atc. m§°g§“°&'%”** Sc). The basis upodp which depletion, exhaustion, wear and tear, ' " ` an obsolescence are to be allowed inzrespect of any property shall be the same vas isiprovided in subdivision (a)* or (b) for t e purpose of determining: t e gainor loss upon the sale or other disposition of such property, except that-- “ C ,,§g§‘*;; ‘*,";,,°§’,"°§°g},,*Q§ (1)= In the casetof 111111BS discoverediby the taxpayer after February ¤r22S.1¤¤»- 28, 1913, the basis fordepletion shall `be the air market value of the proxperty at- the date of discovery or within thirty days there- after,.' auch mineswere»lnot‘*aoquired as thesresult of purchase of aproven tract orjlease, and 1f the fair market valueof the ,,§,Q,'·,‘fg,’§,_°m "”"’“°” property is materially disproportionate to the cost. The depletion allowanoe·‘based‘i?on··discoveryVvalue provided in this paragraph shall not exceed 541 per centum of the net income of the taxpayer (computed without ~ allowance "for depletion) from the properfg upon whiclrthe (discovery was made,·exce(pt that inino case sh the depletion allowance be less than it woul be if computed without M*¤°¤°¤’¤°‘°°°d· referenceto discovery value. {Discoveries shall inclu e minerals in commercial quantities contained within a vein or deposit discovered in  mine orsmining tract bil the taxfpayer after February 28, *1913, if 6"V€lI1 or deiposit thus 'scovere was notlmerely the uninterrupted extension o a continuing commercial vein or deposit already %:nownd§to‘exi21t,¢‘mga§;ftg1e dis::x1oge{·;d» minertgs are xgisuiiici cientlva ue an .>quan 'ty t ey co separa y mm an marketed- ata ` fit; _ ( ` _ anon me eu was (3) In the age? of oil and gaswells the allowance for depletion °w°°°°` sha be 271/ ger oentum of the gross income from the property dur- M·¤i¤=¤¤¤- ingthe taxah year. Such allowance shall not exceed’5O percentum of the net income of the taxpayer (computedpwithout allowance for depletion) from the property, except that 1Il no case shall the dgpletion allogance"berles1i=than it would be if computed without erencetot_'siparagrap .‘ '  ‘ ‘ ‘ i A ]J1V¢DlO!K· ;·*,` ~·   .*   ` ings, ¤!· *¤ ¤¤¤¤¤¤*¤· Sno; ·205.eW'henev¤er 1in* the opinion or the Commissioner the use ` of inventories is *necessary"pin order clearly todetermine the income of anyitaxpayer, inventories shall be takeniby such taxpayer upon