Page:United States Statutes at Large Volume 49 Part 1.djvu/1754

 74T H C ONGRESS. SESS. II. CH. 690. JUNE 22, 1936. 1709 shall include in the return the names and addresses of the participants who would be entitled to share in the net income if distributed and the amount of the proportionate share of each participant. The return shall be sworn to as in the case of a return filed by the bank Ante, p. 1670. under section 52. (f) DIFFERENT TAXABLE YEARS OF ColIMoN TR UST FUND AND where taxable year PARTICIPANT.-If the taxable year of the common trust fund is dif- differs . from partlci- ferent from that of a participant, the proportionate share of the net income of the common trust fund to be included in computing the net income of the participant for its taxable year shall be based upon the net income of the common trust fund for any taxable year of the common trust fund (whether beginning on, before, or after January 1, 1936) ending within the taxable year of the participant. Supplement F-Partnerships Partnerships. SEC. 181. PAR TNER SHIP NOT TAXABLE. Partnership not tax- able. Individuals carrying on business in partnership shall be liable for Individual liability. income tax only in their individual capacity. SEC. 182. TAX OF PARTNERS. Tax of partners. There shall be included in computing the net income of each partner Di stri butiv e sh are included in net income. his distributive share, whether distributed or not, of the net income of the partnership for the taxable year. SEC. 183. COMPUTATION OF PARTNERSHIP INCOME. Part nership income. Th e net i ncome of the pa rtnershi p shall be comp uted in the sam e Computation of. manner and on the same basis as in the case of an individual. SEC. 184. CREDITS AGAINST NET INCOME. The partner shall, for the purpose of the normal tax, be allowed as a credit against his net income, in addition to the credits allowed to him under section 25, his proportionate share of such amounts (not in excess of the net income of the partnership) of interest specified in section 25 (a) as are received by the partnership. SEC. 185. EARNED INCOME. In the case of the members of a partnership the proper part of each share o f the ne t incom e which consist s of ear ned inc ome shal l be determined under rules and regulations to be prescribed by the Commi ssioner with th e appro val of t he Secr etary an d shall be sepa - rately shown in the return of the partnership. SEC. 186. TA XES OF FO REI GN COUNTRIES AND PO SSE SSIO NS OF UNITED STATES. The amount of income, war-profits, and excess-profits taxes imposed by foreign countries or possessions of the United States shall be allowed as a credit against the tax of the member of a partnership to the extent provided in section 131. SEC. 187. PARTNERSHIP RETURNS. Every partnership shall make a return for each taxable year, stat- ing specifically the items of its gross income and the deductions allowed by this title and such other information for the purpose of carrying out the provisions of this title as the Commissioner with the approval of the Secretary may by regulations prescribe, and shall include in the return the names and addresses of the individuals who would be entitled to share in the net income if distributed and the C redits agains t net income. Additional, from partnership exemp- tions. Ante, p.1662. Earned income. Determination of. Foreign, etc ., taxes. Credit for, allowed partners. Ante, p. 1696. Partnership returns. Sworn statement of gross in come, etc.