Page:United States Statutes at Large Volume 47 Part 1.djvu/206

 182 INCO ME TAX Fraternal societies, etc. Condition. Limit. Unlimited deduc- tions, p. 210. Future expenses in case of casual sales of real property. Allowance for future liabilities under con- tract. Bond. Dividends received by corpo ratio ns. From a domestic cor- poration. From a fore ign cor- poration, if more than 50 per cent derived from Unit ed States sources. Poet, p . 208. Divid ends from China Trade Act cor- porations, etc ., ex- cept ed. Post, p. 231. Pen sion t rusts. Contributions to. Post, p. 221. Allowances under a pre vious law. Vol. 45, p. 802. fi2d CONGRESS. SESS. I. CH. 209. JUNE-6, 1932 . (5) a fraternal society, order or association, operating under t he lodge system, but onl y if suc h contri butions o r gifts are to b e 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 15 per centum of th e ta xpay er's net inc ome as c ompu ted with out the benefit of this subsection. Such contributions or gifts shall be allowable as deductions only if verified under rules and regulations prescribed by the Commissioner,. with the approval of the Secretary. (For unli mited deduc tion if co ntribu tions and gifts excee d 90 per centum of the net income, see section 120.) (o) FUTURE EXPENSES IN CASE OF CASUAL SALES OF RE AL PROP- ERTY.-In the case of a casual sale or other casual disposition of real proper ty by an individ ual,' a reasonab le allowa nce for future e xpense liabilities, incurred under the provisions of the contract under which such sale or other disposition was made, under such regulations as the Comm issi oner, w ith the appr oval 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, condi- tioned upon the payment (notwithstanding any statute of limita- tions) 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 contract. (p) DIVIDENDS RECEIVED BY CORPORATIONS :In the case of a corpo ratio n, the amou nt re ceive d as d ivide nds- (1) from a domestic corporation which is subject to taxation under this title, or (2) from any foreign corporation when it is shown to the satis- f actio n of the Co mmiss ioner that more than 50 pe r cent um of the gross income of such foreign corporation for the three-year period en ding wit h the cl ose of it s taxabl e year p receding the dec laration 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 under section 119. The deduction allowed by this subsection shall not be allowed in respect of dividends received from a corporation organized under the China Trade Act, 1922, or from a corporation which under sec- tion 251 is taxable only on its gross income from sources within the United States by reason of its receiving a large percentage of its gross income from sources within a possession of the United States. (q) PENS ION TimsTs .- An e mplo yer esta blis hing or main tai ning a pension trust to provide for the payment of reasonable pensions to his employees (if such trust is exempt from tax under section 165, relating to trusts created for the exclusive benefit of employees) shall be allowed as a deduction (in addition to the contributions to such trust durin g the taxa ble y ear to cove r the pensi on li abili ty accru ing d uring the y ear, allow ed as a ded uctio n unde r sub secti on (a) of th is sec tion) a re asona ble am ount trans ferred or p aid i nto such trust during the taxable year in excess of such contributions, but only if such amount (1) has not theretofore been allowable as a deduction, and (2) is apportioned in equal parts over a period of ten consecutive years beginning with the year in which the transfer or payment is made. Any deduction allowable under section 23 (q) of the Revenue Act of 1928 which under such section- was appor- tioned to any taxable year subsequent to the taxable year 1931 shall be allowed as a deduction in the years to which so apportioned to