Page:United States Statutes at Large Volume 48 Part 1.djvu/762

 736 73d CONGRESS. SESS. II. CH. 277 . MAY 10, 1934 . INCO ME TAX . (b) SHIPS UND ER FOR EIG N FLAG .-The income of a nonresident ALIEN R iNDIVID- alie n indi vidual which consi sts ex clusive ly of earnin gs der ived f rom L Earn gs n f om for - the operation of a ship or ships documented under the laws of a eig n sh ip operations foreign country which grants an equivalent exemption to citizens of tax exempt. the United States and to corporations organized in the United States, shall not be included in gross income and shall be exempt from taxation under this title. Deductions. SEC. 212. DEDUCTIONS. Allowed onl y if con- (a) GENERAL RULE .-In the case of a nonresident alien individual neeted with income fr om United States the deductions shall be allowed only if and to the extent that they sources' are connected with income from sources within the United States ; and the proper apportionment and allocation of the deductions with respect to sources of income within and without the United States Ante, p. 716. shall be determined as provided in section 119, under rules and regulations prescribed by the Commissioner with the approval of the Secretary. (b) LOSSES .- Losses. (1) T he de ducti on f or lo sses not conne cted with the trade or Not conn ected wit h trade or business. business if incurred in transactions entered into for profit, allowed Ante, p. 689. by section 23(e) (2) shall be allowed whether or not connected with in come f rom so urces within the U nited S tates, but o nly if the profit, i f such tr ansaction had resu lted in a profit, would be taxable under this title. Casualty, etc ., losses (2) The deduc tion f or los ses of prope rty not conne cted w ith th e not connected with business. trade or business if arisin g from ce rtain cas ualties o r theft, allowed by section 23(e) (3), shall be allowed whether or not connected with income from sources within the United States, but only if the loss is of property within the United States. Char itab le, e tc., tributions allowed only c on- (C) CHARITABLE, ETC., CONTRIBUTIONs.-The so-called " charitable to domes tic corpora- contribution" deduction allowed by section 23(0) shall be allowed Lions, etc. Inte, p. 690. whether or not connected with income from sources within the United States, but only as to contributions or gifts made to domestic corpo ration s, or to com munity chest s, fund s, or founda tions, creat ed in the United States, or to the vocational rehabilitation fund. Credits against net SEC. 213. CR EDI TS AG AIN ST NET INCOME. income. Personal exemption. In the case of a nonresident alien individual the personal exemp- .l nte ,p . 6 s a I tion allowed by section 25(b) (1) of this title shall be only $1,000. cont iguou s Dependents, i country . The credit for d epende nts al lowed by sect ion 25 (b) ( 2) sha ll not be allowed in the case of a nonresident alien individual unless he is a resident of a contiguous country. Allowan ce deduc- SEC. 214. ALLOWANCE OF DEDUCTIONS AND CREDITS. tions and credits. Filing return of total (a) RETURN TO CONTAIN INFORMATION .-A nonresident alien indi- income from United states sources. vidual shall receive the. benefit of the deductions and credits allowed to him in this title only by filing or causing to be filed with the collector a true and accurate return of his total income received from all sources in the United States, in the manner prescribed in this title ; including therein all the information which the Commissioner may deem necessary for the calculation of such deductions and credits. Per sonal exe mpti on (b) TAX WITHHELD AT SOURCE .-The benefit of the personal credits, etc., by filing claim with withhold- exemption and credit for dependents, may, in the discretion of the tug agent . Commissioner and under regulations prescribed by him with the approval of the Secretary, be received by a nonresident alien indi- vidual entitled thereto, by filing a claim therefor with the with- holding agent.