Page:United States Statutes at Large Volume 49 Part 1.djvu/1740

 74TH C ONGRESS. SESS. II. CH. 690. JUNE 22. 1936. 169 5 (e) INCOME FROM SOURCES PARTLY WITHIN AND PARTLY WITHOUT Income partly within and partly without UNI TED STATES.-Items of gross income, expenses, losses and deduc- united states . tions, other than those specified in subsections (a) and (c) of this section, shall be alloc ated or appor tioned to sou rces within or without Apportionment, the United States, under rules and regulations prescribed by the Commissioner with the approval of the Secretary. Where items of sources' united States gross income a re separ ately al located to sourc es withi n the Un ited States, there shall be deducted (for the purpose of computing the net income therefrom) the expenses, losses, and other deductions properly apportioned or allocated thereto and a ratable part of other expenses, losses or other deductions which can not definitely be allocated to some item or class of gross income. The remainder, if any, shall be included in full as net income from sources within the Uni ted Sta tes. In the case of gross income derived from sources Gross income de- ri ved from sources partly w ithin an d partly without the Uni ted Stat es, the net inco me partl y within and may first be computed by deducting the expenses, losses, or other partly without. deductions apportioned or allocated thereto and a ratable part of any expe nses, lo sses, or other d eduction s which can not definite ly be allocated to some items or class of gross income ; and the port ion Determination. of such net income attributable to sources within the United States may be determined by processes or formulas of general apportion- ment prescribed by the Commissioner with the approval of the Secretary. Gains, profits, and income from- (1) transportation or other services rendered partly within Transportation or and partly without the United States, or other services. (2) from the sale of personal property produced (in whole or Sale of personal prop- in part) by the taxpayer withi n and sold withou t the Unite d erty. 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 Purchase, sale, etc ., d erived f rom the purchase of pers onal pro perty wi thin and its sal e o f persona l prope rt y. without the United States or from the purchase of personal prop- erty without and its sale within the United States, shall be treated as deriv ed entir ely from sources within the coun try in w hich sol d, except that gains, profits, and income derived from the purchase of Exceptions. personal property within the United States and its sale within a possession of the United States or from the purchase of personal 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 -without the United States. (f) DEFINITIONS .-m ss used in this section the words "sale" or Definitions. "sold" include "exchange" or "exchanged" includes "created" "fabricated" "manufactured" "extracted" "proc- essed", "cured", or "aged". SEC. 120. UNLIMITED DEDUCTION FOR CHARITABLE AND OTHER Charita ble, e tc ., con- CONTRIBUTIONS. tributions . In the case of an individual if in the taxable year and in each of unlimited deduction. t he ten p receding taxable years t he amoun t of the contrib utions o r gifts described in section 23 (o) plus the amount of income, war- A"te, p . 1860 . profits, or excess-profits taxes paid during such year in respect of preceding taxable years, exceeds 90 per centum of the taxpayer's net income for each such year, as computed without the benefit of section 23 (o), then the 15 per centum limit imposed by such section shall not be applicable.
 * and the word "produced"