Page:United States Statutes at Large Volume 47 Part 1.djvu/249

 72d CONGRESS. SESS. I. CH. 209. JU NE 6, 1932 . (6) REAL ESTATE ExPENSES -Taxes and other expenses paid dur- ing the taxable year exclusively upon or with respect to the real estate owned by the company, not including taxes assessed against local benefits of a kind tending to increase the value of the prop- erty assessed, and not including any amount paid out for new buildings, or for permanent improvements or betterments made to increase the value of any property. The deduction allowed by this paragraph shall be allowed in the case of taxes imposed upon a shareholder of a company upon his interest as shareholder, wh ich are paid by the comp any with out reimbursement from the shareholder, but in such cases no deduction shall be allowed the shareholder for the amount of such taxes ; (7) DEPRECIATION .-A reasonable allowance for the exhaustion, wear and tear of property, including a reasonable allowance for obsolescence ; and (8) INTEREST.-All interest paid or accrued within the taxable year on its indebtedness, except on indebtedness incurred or con- tinued to purchase or carry obligations or securities (other than obligations of the United States issued after September 24, 19 17, and originally subscribed for by the taxpayer) the interest upon which is wholly exempt from taxation under this title. (b) RENTAL VALUE OF REAL ESTATE .-The deduction under sub- section (a) (6) or (7) of this section on account of any real estate owned and occupied in whole or in part by a life insurance company, shall be limited to an amount which bears the same ratio to such deduction (computed without regard to th is subsection) as the rental value of the space not so occupied bears to the rental value of the entire property. (c) FOREIGN LIFE INSURANCE COMPANIES .-In the case of a foreign life insurance company the amount of its net income for any taxable year from sources within the United States shall be the same pr o- portion of its net income for the taxable year from sources within and without the United States, which the reserve fun ds r equi red by law and hel d by it at the end of the taxable year upon business transacted within the United States is of the reserve funds held by it at the end of the taxable year upon all business transacted. SEC. 204. INSU RANCE COMPAN IES O THER T HAN LI FE OR MUTUA L. (a) IMPO SITI ON O F TA X .-In lieu of the tax imposed by sec tion 13 of this title, there shall be levied, collected, and paid for each taxable year upon the net income of every insurance company (other than a life or mutual insurance company) a tax as follows : (1) In the case of such a domestic insurance company, 133/ 4 per centum of its net income ; (2) In the case of such a foreign insurance company, 133/ 4 per centum of its net income from sources within the United States. (b) DEFINITION OF INCOME, ET C .-In the case of an insurance company subject to the tax imposed by this section- (1) GROSS INCOME .-" Gross income" means the cum of (A) the combined gross amount earned during the taxable year, from investment income and from underwriting income as provided in this subsection, computed on the basis of the underwriting and investment exhibit of the annual statement approved by -the National Convention of Insurance Commissioners, and (B) gain during the taxable year from the sale or other disposition of property, and (C) all other items constituting gross income under section 22 ; (2) NET INCOME .-" Net income " means the gross income as defined in paragraph (1) of this subsection less the deductions allowed by subsection (c) of this section ; 3051 ° -33-15 225 INCOME TAX Taxes, etc., on realty. E xcep tion. If tax paid on share h olde r's inte rest. Depreciation of prop• erty. Interest on indebted. ness. E xcep tion. Rental value of real estate. Deduction of propor- tionate part of depreci- ation, etc ., expenses. Determination of. Foreign life insurance comp anie s. Net income on busi. ness to United States. Insurance companies other than life or mutual. Tax imposed. Dome stic com pani es. Foreign companies. Definition of terms. " Gross income ." "Net income ."