Page:United States Statutes at Large Volume 48 Part 1.djvu/744

 718 73d C ONGRESS. SESS. II. CH. 277. MAY 10, 1934 . I COMPUTAT NCOME TA ON be a llocated to some item or class of gross i ncome. The remainder, of NET INCOME- if any, shall be included in full as net income from sources within Could. the United States. In the case of gross income derived from sources partly within and partly without the United States, the net income may first be computed by deducting the expenses, losses, or other deductions apportioned or allocated thereto and a ratable part of any expenses, losses, or other deductions which can not definitely be allocated to some items or class of gross income ; and the portion of such ne t income attribu table to sources within the Unit ed State s may Processes, etc ., for be determined by processes or formulas of general apportionment determination. prescribed by the Commissioner with the approval of the Secretary. Gains, profits, and income from- cation Gains or fro m oth er s tr srv - - (1) transpo rtation or other service s render ed partl y within and ices, par tly with out the United S tates, o r Sale of personal prop- (2 ) from the sale of per sonal property produced (in whole or er ty_ in par t) by the ta xpay er within and so ld w itho ut the United States, or produced (in whole or in part) by the taxpayer without and sold within the United States, shall be treated as derived partly from sources within and partly from sources without the United States. Gains, profits and income derived from the purchase of personal property within and its sale without the United States or from the purchase of personal property without and its sale within the United States, shall be treated as derived entirely from sources within the country in which sold, Exceptions. except that gains, profits, and income derived from the purchase of p ersona l pro perty withi n the United States and its sale with in a possession of the United States or f rom the purchase of per so nal property within a possession of the United States and its sale within the United States shall be treated as derived partly from sources within and partly from sources wit ho ut the United States. Definitions. (f) DEFINITIONS .-AS used in this section the words "sale" or "sold " include " exchange " or " exchanged " ; and the wor d " pro- duced " includes " created ", " fabricate d " , " manufactured ", 4 ` extracted ", " processed ", " cured ", or"aged". charitable contribu- SEC . 120. UNLIMITED DEDUCTION FOR CHARITABLE AND OTHER tions, etc . C ONTRI BUTI ONS . Unlim ited d educti on . In the case of an individual if in the taxable year and in each of the ten preceding taxable years the amount of the contributions or gif ts de scribe d in section 23(o) plus the amount of inco me, wa r- prof its, or excess-p rofits ta xes paid during such yea r in res pect of preceding ta xab le years, ex cee ds 90 per centum of the taxpayer's net income for each such year, as computed without the benefit of Ante, p. coo. section 23(o), then the 15 per centum limit imposed by such section shall not be applicable . C R E D IT S AGAINST TAX. Taxes of foreign coun- tries, and U.S . posses- sions . Allowances . Payments of citizens and domestic corpora- tions. Supplement C-Credits Against Tax [Supplementary to Subtitle B, Part III] SEC. 131. TAXES OF FOREIGN COUNTRIES AND POSSESSIONS OF UNITED STATES. (a) ALLOWANCE OF CREDIT.-If the taxpayer signifies in his return his desire to have the benefits of this section, the tax imposed by this title sha ll be credited w ith (1) CITIZEN AND DOMESTIC CORPORATION.-In the case of a citizen of the United States and of a dom estic corpo ratio n, the amou nt of any income, war-profits, and excess-profits taxes paid or accrued