Page:United States Statutes at Large Volume 45 Part 1.djvu/932

 SEVENTIETH CONGRESS. SESS. I. Ca. 852. 1928 . 881 SEC. 705. IN STALLM ENT S AT,ES-RETROACTIVE. (a) If any taxpayer by an ori ginal return made pri or to February 26, 1926, changed the meth od of repor ting his net income for the taxable year 1924 or any prior taxable year to the install- ment basis, then, if his income for such year is properly to be com- puted on the installment basis- (1) No refund or credit of income, war-profits, or excess- profits taxes for the year in respect of which the change is made or any subsequent year shall be made or allowed, unless the taxpayer has o verpaid his taxes for such year, computed by includi ng, in com puting inc ome, amoun ts receive d during such year on account of sales or other dispositions of property ma de in any pri or year ; and (2) No deficiency shall be determined or found in respect of any such taxes unless the taxpayer has underpaid his taxes for such year, computed by excluding, in co computing income, amounts received during such year on account of~sales or other disposi- tions of property made in any year prior to the year in respect of which the change was made. (b) Nothing in this section shall be construed as in any manner modifying section 607, 6 08, 609, or 610 of this Act, relating to the effect of the running of the s tatute of limita tions. SEC. 706. CON TRIBUTIONS TO CHARITY-RETRO ACTIVE. In computing the net income of any individual, other than a non- resident alien, for the taxable year 1923, there shall be allowed as a deduction (subject to the percentage limitation prescribed by section 214(a) (11) of the Revenue Act of 192 1) any contributions or gifts to or for the use of a trust organized and operated exclusively for religious, cha ritable, scienti fic, literary, o r educational pu rposes, if such individual made during the taxable year 1924 contr ibutions or gift s to the same tr ust and in the a ggregate of subs tantiall y the sam e amount. In no case shall there be allowed as a deduction under this section contributions or gifts to an amount in excess of $50,000. Any tax paid in respect of such deduction shall, subject to the statutory period of limitation applicable thereto, be credited or refunded. SEC. 707 . INCOME TAX ON SALE OF VESSELS BUILT BEFORE 1914 . The second paragraph of section 23 of the Merchant Marine Ac t, 1920, is amended, to take effect as of June 5, 1920, to read as follows During the period of ten years from June 5, 1920, any person, a citizen of the United S tates, w ho may s ell a ve ssel doc umented under the laws of the United States and built prior to Janu ary 1, 1914, shall be e xempt from all i ncome taxes that would be p ayabl e upon any of the proceeds of such sale under the Revenue Act of 1918, or under any subsequent Re venue Act in force during such ten-year New American ships period, if the entire proceeds thereof shall be invested in the build- to be built from pro- ing of new ships in American shipyards, such ships to be documented ceeds thereof. under the laws of the United States and to be of a type approved by the board. The basis of any such new ship shall be reduced by the amount of the gain from such sale exempt from taxation under this paragraph ." SEC. 708. DE FIN ITIO N OF THE T ERM "MO TOR BOAT ." b Dt finition of "motor The t erm "mot or boat," wh en u sed in the Act of Se ptem ber 21, dart s Ple asu re ad in. 1922, includes a yacht or pleasure boat, regardless of length or ton- Vol. 42, p. 885. nage, whether sail, steam, or motor propelled, owned by a resident of the Uni ted States or br oug ht int o the United Sta tes for REVENUE ACT OF 1928 Insta llmen t sa les. Computing tax on ins tal lme nt bas is, if method ch anged thereto. No ref und unless taxes over paid on s ales in prior years. No deficiency found unless taxes underpaid by excluding sales in prior years. No modification of statute of limitations. Ante, pp. 874, 875. Con tri bu tio ns to charity. In net income of indi- viduals for 1923, de- duction allowed for any, to a trust for religious etc ., purposes. Condition. Maximum. Credit or refund of tax paid. Income tax on sale of vess els built before 1914 . Amendment to Mer , chant Marine Act, 1920 . Vol.41,p . 998, amend- ed. Income tax exemp- tion on sales by citizens of A meric an s hips built prior to January 1, 1914. Basis of new ships.

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