Page:United States Statutes at Large Volume 48 Part 1.djvu/757

 73d C ONGRESS. SESS. II. CH. 277 . MAY 10, 1934 . 731 SEC. 188. DIFFERENT TAXABLE YEARS OF PARTNER AND PART- INCOME TAX. PARTNERSIIIPS- NERSHIP. Contd. Taxable years of part- (a) GENER AL RULE .-If the taxable year of a partner is different nIataxable par tnership. nyear f from that of the partnership, the distributive share of the net income part ner differs from of the partnership to be included in computing the net income of that of partnership. the partner for his taxable year shall be based upon the net income of the partnership for any taxable year of the partnership (whether beginning on, before, or after January 1, 1934) ending within the taxable year of the partner. (b) PARTNERSHIP YEARS BEGINNING IN 1933 .-For the purpose of gin Partners hip 193 3 . earsbe- computing the net income of a partner for a taxable year beginning A~ om f put tion under 932. after December 31, 1933, the partnership net income for any taxable vol. 47, pp. 191, 223. year of the partnership beginning before January 1, 1934, shall be computed under the Revenue Act of 1932, without regard to sections 101 and 186 thereof (relating to capital net gain and capital net Ante, p. 714. loss) but as if se ction 117 of this Act (exce pt subsec tion (d) thereof) had formed a part of Title I of the Revenue Act of 1932. Supplement G-Insurance Companies COMPANES.N C E SEC. 201. TAX ON LIFE INSURANCE COMPANIES. Tax on life insu rance companies. (a) DEFINITIGN .-When used in this title the term "life incur- " Life insu rance com - ance company " means an insurance company engaged in the busi- p-y" defined. ness of issuing life insurance and annuity contracts (including con- tracts 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 T A X .-In lieu of the tax imposed by section 13, . Rate of tax on net there shall be levied, collected, and paid for each taxable year upon Ante, p. 686 . the net income of every life insurance company a tax as follows : (1) In the case of a domestic life insurance company, 133/4 Domestic. per centum of the amount of its net income in excess of the credit provided in subsection (c) of this section ; (2) In the case of a foreign life insurance company, 133/4 per Foreign. centum of the amount of its net income from sources within the United States in excess of the credit provided in subsection (c) of this section. (c) For the purpose only of the tax i mposed by this section po redits allowed eor- there shall be allowed as a credit against net income (or, in the case of a foreign life insurance company, against net income from sources within the United States) the amount received as interest upon ri In terestonU.S .seeu- obliga tions of the Unite d Stat es or of corp oratio ns org anized under Act of Congress which is allowed to an individual as a credit for purposes of normal tax by section 25 (a) (2) or (3). In the case A nte,p. 692, of a foreign life insurance company the credit shall not exceed Forei gn co mpan ies, an amount which bears the same ratio to the amount otherwise limitation. allowed as a credit as the reserve funds required by law and held 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 ta xable year u pon al l busi ness t ransact ed. SEC. 202. G ROSS INCO ME OF LIF E IN SURA NCE C OMPA NIES. Gross income, life in- suran ce c ompan ies. (a) In the case of a life insurance c ompany the term " gross "dross income" de- income " means the gross amount of income received during the taxable year from interest, dividends, and rents. (b) The term "reserve funds required by law" includes, in the '
 * Reserve

funds re- case of assessment insurance, sums actually deposited by any com- quired by law" . pany or association with State or Territorial officers pursuant to Application of . law as gu arant y or rese rve f unds, and any funds mai ntain ed un der