Page:United States Statutes at Large Volume 47 Part 1.djvu/216

 192 72d CONGRESS. SESS. I. CH. 209 . JUNE 6, 1932 . INCOME TAX (6) "Capital net loss" means the excess of the sum of the ., Capital net loss." capita l losses plus the capital d eductions over the total am ount of Ordinary net in- capital gain . come."

7) Ordinary net income means the net income, computed in accordance with the provisions of this title, after excluding all items of capital gain, capital loss, and capital deductions . "Capi tal a sset s." (8) " Capital assets " means property held by the taxpayer for more than two years (whether or not connected with his trade or ed Prop erty not inclu d- business), but does not include stock in trade of the taxpayer or other property of a kind which would properly be included in the inventory of the taxpayer if on hand at the close of the taxable year, or property held by the taxpayer primarily for sale in the course of his trade or business . For the purposes of this de fini tion --- Property received on (A) In determining the period for which the taxpayer has an exchange . held pr operty recei ved on an ex change there shall be inc luded the period for which he held the property exchanged, if under the pro vision s of s ection 113, the pr operty receiv ed has, for Post, p. 198. the purpose of determining gain or loss from a sale or exchange, the same basis in whole or in part in his hands as the property exchanged. holding. reri gd of property ( B) In dete rmin ing t he pe riod for which the taxp ayer has held property however acquired there shall be included the Post, p .198. period for which such property was held by any other person, if under the provisions of section 113, such property has, for the purpose of determining gain or loss from a sale or exchange, the same basis in whole or in part in his hands as it would have in the hands of such other person. stock, etc., received on a distribution. (C) I n det ermin ing the p eriod for whic h the taxp ayer has held stock or securities received upon a distribution where no gain i s reco gnized to th e dist ribute e under the p rovisi ons of Vol.4e,p. 818. sectio n 112 (g) of this Act or the R evenue Act of 1928, there Post, p. 197. shall be included the period for which he held the stock or securities in the distributing corporation prior to the receipt of the stock or securities upon such distribution. Comp utin g pe riod D In determining the period for which the taxpayer has stock has been held, held stock or securities the acquisition of which (or thcntract or option to acquire which) resulted in the nondeductibility Vol.45,p.826. (under section 118 of this Act or the Revenue Act of 1928, relat- Post, p . 208. ing to wash sales) of the loss from the sale or other dispsition of substantially identical stock or securities, there shall be included the peri od for wh ich he he ld the s tock or s ecurities the loss from the sale or other disposition of which was not deductib le. Collection and pay- (d) COLLECTION AND PAYMENT of TAX .The total tax determined ' ment ofta x. under subsection (a) or (b) shall be collected and paid in the same manner, at the same time, and subject to the same provisions of law, including penalties, as other taxes under this title. Bale of mines and oil SEC. 102. SALE OF MINES AND OIL OR GAS WELLS. or qas wells. Tax on selling price . (a) In the case of a bona fide sale of mines, oil or gas wells, or any interest therein, where the principal value of the property has been demonstrated by prospecting or exploration and discovery work done by the taxpayer, the portion of the tax imposed by sec- tion 12 of this title attributable to such sale shall not exceed 16 per centum of the selling price of such property or interest. Limitation, p. 191. (b) For limitation to 121/2 per centum rate of tax, see section 101.