Page:United States Statutes at Large Volume 45 Part 1.djvu/893

 842 SEVENTIETH CONGRESS. SESS. I. CH. 852. 1928 . INC OME TAX SEC. 187. NET LOSSES. Net los ses . Ded ucti on f or, al- The benefit of the special deduction for net losses allowed by sec- lowad p artners. Ante,82s. tion 117 shall be allowed to the members of a partnership under regu- lations prescribed by the Commissioner with the approval of the Secretary. Foreign taxes, etc. SEC. 188 . TAX ES OF F OREIGN COUNTR IES AND POSSE SSIONS OF UNITED STATES. Credit for, allowed The amount of income war-profits, and excess-profits taxes partners. imposed by foreign countries or ossesions of the United States Ante, p . 829. shall be allowed as a credit against the tax of the member of a part- nership to the extent provided in section 131. Partnership returns. SEC. 189 . PARTNERSHIP RETURNS. of Every partnership shall make a return for each taxable year, stating specifically the items of its gross income and the deductions allo wed by this title, and s hall i nclude in the retur n the names and addresses of the individuals who would be entitled to share in the net income if distributed and the amount of the distributive share of each individual. The return shall be sworn to by any one of the part ners. Supplement G-Insurance Companies companies'fe insurance SEC. 201 . TAX ON LIFE INSURANCE COMPANIES. Meaning of term. (a) Definition .-When used in this title the term "life insur- anc e co mpan y " means an insurance company engaged in the busi- ness of iss uing l ife in suranc e and annuity contr acts ( includ ing co n- tracts of combined life, health, and accident insurance), the reserve funds of which held for the fulfillment of such contracts comprise Tax on net incomes; more than 50 per centum of its total reserve funds. Ante, p. 797. (b) Rate of tax.-In lieu of the tax imposed by section 13, there shall be levied, collected, and paid for each taxable year upon Domestic life, the net income of every life insurance company a tax as follows : (1) In the case of a domestic life insurance company, 12 Foreign life. per centum of its net income ; (2) In the case of a foreign life insurance company, 12 per centum of its net income from sources within the United States. Gross income . SEC. 202. GROSS INCOME OF LIFE INSURANCE COMPANIES. Sources of. (a) In the case of a life insurance company the term " gross income " means the gross amount of income received during the Application of "re- taxable year from interest, dividends, and rents . serve fund required by law ", to asses smen t (b) The term " reserve funds required by law " includes, in the companies, case of assessment insurance, sums actually deposited by any com- pany or association with State or Territorial officers pursuant to law as guaranty or reserve funds, and any funds maintained under the charter or articles of incorporation of the company or associa- tion exclusively for the payment of claims arising under certificates of membership or policies issued upon the assessment plan and not subject to any other use. Ne t income. SEC. 203 . NET INCOME OF LIFE INSURANCE COMPANIES. Deductions fr om (a) General rule .-In the case of a life insurance company the gross income. term " net income " means the gross income less- Exempt interest . (1) TAX-FREE INTEREST .-The amount of interest received dur- ing the taxable year which under section 22(b) is exempt from taxation under this title ; Sw orn statement gross income, etc. Insurance companies.

�