Page:United States Statutes at Large Volume 45 Part 1.djvu/891

 840 SEVENTIETH CONGRESS. Sxss. I. Ci$. 852. 1928 . INCOME TAX SEC. 166. REV OCAB LE TR USTS. Revocable trusts . Inco me din that of fro m, grant- - eluded Where the grantor of a trust has, at an time during the taxable or. year, either alone or in conjunction with any person not a beneficiary of the trust, the power to revest in himself title to any part of the corpus of the trust, then the income of such part of the trust for such taxable year shall be included in computing the net income of the grantor. Income for benefit of grantor. SEC. 167. INCOME FOR BENEFIT OF GRANTOR. . Dist ribu tion of, from trust, included in his Where any part of the income of a trust may, in the discretion of income. the grantor of the trust, either alone or in conjunction with any pers on not a benefic iary of the trust, be dis tributed to the grantor or be held or accumulated for future distribution to him, or where any part of the income of a trust isormaybe applied to the pay- ment of premiums u pon policies of insurance on the life of the rantor (except policies of insurance irrevocably payable for the Ante, p .801 . purposes and in the manner specified in section 23(n), relating to the so-called "charitable contribution" deduction), suc h par t of the income of the trust shall be included in computing the net income of the grantor. Capital net gains and SE losses. 'a. 16 8. CAPITAL NET GAINS AND LOSSES. . Determina tion of, and to be separately In the case of an estate or trust, or of a beneficiary of an estate shown in returns. or trust, the proper part of ea ch share of the net income which consists, respectively, of ordinary net income, capital net gain, or cap ital net loss, s hall be determin ed under rules a nd regul ations to be p resc ribe d by the Com miss ione r wi th the a ppro val of the Secret ary, and shall b e separa tely sho wn in th e return of the estate or trust, and shall be taxed to the beneficiary or to the estate or trust as provided in this Supplement, but at the rates and in the Ante, p.811. manner pro vi ded in section 101(a) and (b), relating to capital net gains and losses. Net losses. SEC. 169. NET LOSSES. Allowance of special The be nefit of the special deduc tion f or ne t los ses al lowed by de Ante, p. 825'. section 117 shall be allowed to an estate or trust under regulations prescribed by the Commissioner with the approval of the Secretary. Taxes of foreign coun- SEC 1 70. TAXE S OF FORE IGN COUN TRIES AND POSS ESSI ONS OF tries. UNITED STATES. Acv ae ag ain st tax of beneficiary. The amoun t of inc ome, wa r-pr ofit s, and e xces s-pr ofit s ta xes imposed by foreign countries or poss essio ns of the U nited State s Ante, p. 829. shall be allowed as credit against the tax of the beneficiary of an estate or trust to the extent provided in section 131. Partnerships. Supplement F-Partnerships Not t axab le. SEC. 181. PAR TNER SHI P NOT TAXABLE. Partners taxed as in- div idu als. Individuals carrying on business in partnership shall be liable for income tax only in their individual capacity. Tax of partners. SEC. 182. TAX OF PARTNERS. Die d i in n eluded net income. (a) General rule .-There shall be included in computing the net income of each partner his distributive share, whether distributed or not, of the net income of the partnership for the taxable year. If the tax able yea r of a p artner i s differ ent from that of the par tner- ship, the amount so included shall be based upon the income of the partnership for any taxable year of the partnership ending within] his taxable year.

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