Page:United States Statutes at Large Volume 47 Part 1.djvu/227

 72d CONGRESS. SESS. I. CH. 209. JUNE 6, 1932 . 203 the property. Such allowance shall not exceed 50 per centum of urooxs TAX the net income of the taxpayer (computed without allowance for depletion) from the property, except that in no case shall the L1mitatior:m depletion allowance be less than it would be if computed without reference to this paragraph. (4) PERCENTAGE DEPLETION FOR COAL AND MET AL MINES AND Percentage d e pletion suLPnr t .-The allowance for depletion shall be, in the case of mines and sulphur. coal mines, 5 per centum, in the case of metal mines, 15 per centum, and, in the case of sulphur mines or deposits, 23 per centum, of the oss income from the property during the taxable year, excludinom such gross income an amount equal to any rents or royalties - paid or incurred by the taxpayer in respect of the property. Su ch allowance shall not exceed 50 per centum of the net income of the tax paye r (c ompu ted with out allo wanc e fo r de plet ion) from the Exception. property, except that in no case shall the depletion allowance for the taxable year 1932 or 1933 be less than it would be if computed without reference to this paragraph. A taxpayer making return optional return for for the taxable year 1933 shall state in such return, as to each 1Ws property (or, if he first makes return in respect of a property for any taxable year after the taxable year 1933, then in such first return), whether he elects to have the depletion allowance for su ch property for succeeding taxable years computed wi th or without reference to percentage depletion. The depletion allow- ance in respect bf such property for all succeeding taxable years shall be computed according to the election thus made. If the statedyer makes no taxpayer fails to make such statement in the return, the depletion allowance for such property for succeeding taxable years shall be computed without reference to percentage depletion. During the period for which property acquired after December 31, 1933, is held by the taxpayer- if the basis of the property in the hands of the taxpayer acBared ofpro1 per 9•y is, under section 113(a), determined by reference to the basis de ter min ed after by refer- in the hands of the transferor, donor, or grantor, then the deple- e property in nsfeor'nt tion allowance in respect of the property shall be computed with Ante, p. 198. or without reference to percentage depletion, according to the method of computation which would have been applicable if the transferor, donor, or grantor had continued to hold the prop- ert ,or (B) if the basis of ,the property is, under section 113(a), de- eZviouslyholdprop- termi ned by r efer ence to the basi s of oth er p rope rty -pre viou sly inMethodoof ..put- held .by the taxpayer then the depletion allowance in respect of the property shall be computed with or without reference to percentage depletion, according to the method of computation which would have been applicable in respect of the property previously held if the taxpayer had continued to hold such property. SEC. 115. DI STRIBUTION S BY CORPO RATIONS. Distributionsbycor- cutions. (a) DEFINITION of DIVIDEND .-The te rm " divi dend " wh en used p!•D ividsnd,"defined" in this title (except in section 203 (a) (4) and section 208(c) (1 ), E~iag; scoffer -relating to insurance companies) means any distribution made b a February 2s, 1913, g ) y y deemed dividends . corporation to its shareholders, whether in money or in other prop- excepted' reserves erty, out of its earnings or profits accumulated after February 28, 1913 . (b) Soimcx or DIsTRISuTIoxs .For the purposes of this Act every sourcesm distribution is made out of earnings or profits to the extent thereof, and from the most recently accumulated earnings or profits . Any Ao~t~tiio ,e ., earnings or profits accumulated, or increase in value of property tax freeM accrued, before March 1, 1913, may be distributed exempt from tax, after the earnings and profits accumulated after February 28, 1913,