Page:United States Statutes at Large Volume 45 Part 1.djvu/852

 SEVENTIETH CONGRESS. SEss. I. Cii. 852. 1928 . 801 allowed in respect of any property shall be as provided in Pot, p• s21T- section 114. (n) Charitable and other contributions .-In the case of an outs . individual, contributions or gifts made within the taxable year to or for the use of (1 ) the United State s, any State, Terr itory, or any polit ical For public uses. subdivision thereof, or the District of Columbia, for exclusively public purposes ; (2) any corporation, or trust, or communit chest, fund, or corporations, com- p 7 munit che sts, reli- foundation, organized and operated exclusively for religious, gi ou s, scien scientific, etc" charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the . benefit of any private share- ho lder o r indi vidual ; (3 ) the specia l fund for v ocatio nal re habilit ation author ized tain . tional rehabili- by section 7 of the Vocational Rehabilitation Act ; Vol. 41, p. 737. (4) posts or organizations of war veterans, or auxiliary units war veterans' organ- or socie ties o f any such p osts o r orga nizatio ns, if such posts, izations, etc . organizations, units, or societies are organized in the United States or any of its possessions, and if no part of their net earn- ings inures to the benefit of any private shareholder or indi- vidual ; or (5) a fraternal society, order, or association, operating under Condition Frat itio s odg es, etc . . th e lodge s ystem, bu t only if such con tributio ns or gif ts are to be used exclusively for religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals ; to an amount which in all the above cases combined does not exceed Lim it ' 15 per centum of the taxpayer's net income as computed without the benefit of this subsection. Such contributions or gifts shall be allo wable as ded uction s only if ve rified under rules and re gulati ons prescribed by the Commissioner, with the approval of the Secretary. ti Unlimited dedu c. (For unlimited deduction if contributions and gifts exceed 90 per Post,p.828. centum of the net income, see section 120 .) (o) Future expenses in case of casual sales of real property .- On casual sale ofreal property, reserve for In the case of a casual sale or other casual disposition of real future liabilities under prop erty b y an i ndivid ual, a reaso nable a llowan ce for futur e expe nse contract, allowed . liabilities, incurred under the provisions of the contract under which such sale or other disposition was made, under such regulations as the Commissioner, with the approval of the Secretary, may pre- scribe, including the giving of a bond, with such sureties and in such sum (not less than the estimated tax liability computed without the benefit of this subsection) as the Commissioner may require, con- ditioned upon the payment (notwithstanding any statute of limi- tations) of the tax, computed without the benefit of this subsection, in respect of any amounts allowed as a deduction under this sub- section and not actually expended in carrying out the provisions of such contra ct. (p) Div idend s re ceiv ed Dividends received by corporations .-In the case of a cor- by corporations. poration, the amount received as dividends- From a do mestic cor- (1) from a domestic corporation, or poration. ( From a foreign cor- 2) from any foreign corporation when it is shown to the poration, if more than satisfaction of the Commissioner that more than 50 per centum rom erUcent derived of the gross income of such foreign corporation for the three- sources. year period ending with the close of its taxable year preceding the declaration of such dividends (or for such part of such period as the foreign corporation has been in existence) was derived from sources within the United States as determined Post, p. 826. under section 119.

�