Page:United States Statutes at Large Volume 44 Part 2.djvu/57

 s1x*rY.mN*m conoimsse sm 1. cs. 27. ieee. 17 such basis as the Commissioner, withthe approvaloi the Secretary, ¤*°°¤* *¤· may prescribe as-conformingas nearly as mag be to the best practice inthe trade or business an as mcstclearly theincome. ' _ r - ‘ ‘ ( Sm. 206. (a As used.-intlxissection the term “net 1oss" means D°*•¤f " by ¤· the excess of  deductionsallowed by section 214 or·234 over the ::i°liaco¤ne. M gum income, with the following exceptions and limitations: ”*°•¤“°·=··•*·=· (1) Deductions  allowed by law not attributable to the ,{;ggg&¤¤¤¤·¤~¤ <;£e¤—ation of a trade or business regularly carried on by the taxpayer ' all be allowed only to the extent of the amount at the gross ixxgpeigothiedvd from such  orgausinesny;?é¤ s ded I ~ `caseo ataxpayero ert an acc ° ration, uctions §y••*· 0* for  losses otherwise allowed by laws shallm be allowed only to git tm. the e ver the capital gains; ~, _ · “ 4 The deduction for depletion shall not exceed the amount D°°w°"’ wlu ( would be allowable if computed without reference to discovery vala? oéh to ggagraph '(2),icg:1ul;division (‘c) of lieigipn  _ 0 ML . e uction ro` e or in paragra [ *o su 'vision “,§,°°,§,,}’°"*'·‘°‘*,, _’ (5) ofdmction   ofamountsreceived as dividends   not be db °d (5) *f·hm=.¤a¤u be unused is computing   income the ,,,,‘i.‘.°i',,°.$‘.§.,,‘.;1°‘°"°" *=· amount of interest received,   tax under title, decreased by theamount of interest) aid or accrnedwhicli is not allowed as a deduction by   of _stibdiy'ision` (a) of section‘214 or by paraprafh  oo su `) 'visibnj(a) of section 23·$._` 1 I _ Not M ‘I, or any taxable year; its appears uponthe production of ducted ¤¤¤i°$ it evidence satisfactory to the_Co1nmiss1oner t at any taxpayer has w°°‘“°* °•‘**"° sustained a net loss, the amount merger shall be allowed as a deduc- · tion in computing the net income of the td:1;pca£er.for.the taxable year (hereinalter_in_this‘§ection» _) t _, fisecond year ’f), if Mb wwf Ms is in fsxdéss s>f’¤¤<;¥»1 ¤st.i¤¤¤m¤.¤&1¤¤mpuf4d iutksut such deduction); tl1e's.mo1int4‘ofssucli“ exp? “sl1_o ’be_'allowed as a d¢d¤1<>*·{9¤f i¤¤¢¤¤¤ iltilisrths ¤¤¢‘ i¤é¤¤¤9m¢i1i ths a¤s¤t“éu¢¤¤¤di¤g taxable`)teal*fslLx:ireIinstter in tliislisection ( X ed,“_third‘ earf’)_· the deduction in L V  to be inode under regulations   by the Oommissioner with the ‘a(ppl·oyal  one   "   "‘ “ 1 A Bmw U U (c)‘Q (1) If in_ the second year the taxpsyerf other than a wif}. .¤.¤a.e“'li§ cor· oration) sins it capitaltnet 1034the deduction allowed by ’°°°“ "'“· subdivision (mf thisisection shall iii be tappliedns `at deduction in computing theilordinary net . income for such ‘ year; If the deduction is m excess of the ordinary net income (coxiipptedowitirout . such deduction) then the amount of such exam sha be; allowed as a deduction an computing net income_pfor_the' i ‘ A to ML                  U   talgnlonecuud year. has a capital net gainhthe deduc on al owcdbysubdivisiou gc; of this section sha Hrst be splplied asa deduction {nl compat g tl1eLordinary'net income for site year. If the gieductionis in excess of the ordinary) net income I (computed without such ideductionlzl the anioun of   excessslrallinext be applied against thefcaprt net   for such year,)   if in excess 0 the capitalénet gain  smsunt `¤£.°§¤s¢til¤¤¢iS1¤;t¤§i¤¤’.bs s11<>vi¤d‘ ss .¤`5dsd¤¤ti¤¤.¤¤ v $=¤xsp¤¤¤s, net` ineforf ‘e.t`r.vo&i‘f' in `. A »'  A _". A (s¤ is ·u¤w¤¤ is .¤ <1e1¤¢¤1¤» m y:»¥”“““° °°"‘*"’ computint inet income` foftlie third year, (under the provisions or eitl1cr_.suEdivision")`(b) or) (c),‘and· the taxpayer (other than a corporation) basin suelliyear a capital net gain or acapital net .· esssgi-—2r——-e2. ·