Page:United States Statutes at Large Volume 47 Part 1.djvu/247

 72d CONGRESS. SESS. I. CH. 209 . JUNE 6, 1932. 223 SEC. 184. CREDITS AGAINST NET INCOME. INCO ME TAX The partner shall, for the purpose of the normal tax, be allowed credits against not as a credit against his net income, in addition to the credits allowed 1° Additional, from to him under section 25, his proportionate share of such amounts of p artn ershi p ex emp- dividends and interest specified in section 25(a) and (b) as are Ante,p .1&4, received by the partnership. SEC. 185. EARNED INCOME. Earned Income. In the case of the members of a partnership the proper part of D eter minat ion of. each share of the net income which consists of earned income shall be dete rmined under rules and r egulat ions to be pr escrib ed by the Commissioner with the approval of the Secretary and shall be sepa. rately shown in the return of the partnership and shall be taxed to the member as provided in this Supplement. SEC. 186. CAPITAL NET GAINS AND LOSSES. Capital net gains and los ses. In the case of the members of a partnership the proper part of ° d ditional exe om each share of the net income which consists, respectively, of ordinary tious , net income, capital net gain, or capital net loss ) shall be determined under the rules and regulations to be prescribed by the Commis- sioner with the approval of the Secretary, and shall be separately shown in the return of the partnership and shall be taxed to the member as provided in this Supplement, but at the rates and in the manner ~rovided in section 101(a) and (b), relating to capital net Ante,p.191 . gains and losses . SEC. 187. NET LOSSES. Net losses. The b enefit of the spec ial deduc tion for net loss es allowe d by sec- 10 pekoe fro m, al - wed tion 117 shall be allowed t o the mem bers of a partners hip under regu- Ante, p . 207. lations prescribed by the Commissioner with the approval of the Secretary . SEC. 188. TAX ES OF FOREIGN COUNTRIES AND POSSESSIONS OF Foreign taxes . UNITE D STAT ES . The amount of income, war-profits, and excess-profits taxes partners. Credit for, a llowed imposed b y foreign countrie s or poss essions o f the Uni te States shall Ante, p. 211. be allowed as a credit against the tax of the member of a partnership to the extent provided in section 131. SEC. 189. PART NERSHI P RETU RNS. Partnership returns . Every partnership shall make a return for each taxable year, g Sworn statement of stating s pecifical ly the it ems of it s gross i ncome and the dedu ctions allowed by this title, and shall include in the return 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 partner s. Supplement G-Insurance Companies Insurancecompauies . SEC. 201. TAX ON LIFE INSURANCE COMPANIES. Tax on life insurance companies. (a) DEFINrrION.-When used in this title the term "life insurance "Life insurance com- company " means an insurance company engaged in the business of any," defined. issuing life insurance and annuity contracts (Including contracts of combined life, health, and accident insurance), the reserve funds of which held for the fulfillment of such contracts comprise more than 50 per centum of its total reserve funds. (b) RATE of TAx .-In lieu of the tax imposed 1 -by section 13, there ins eof tax on net shall be levied, collected, and paid for each taxable year upon the Ante, p. 177. net income of every life insurance company a tax as follows (1) In the case of a domestic life insurance company, 133/4 per Domestic. centum of its net income ;