Page:United States Statutes at Large Volume 52.djvu/514

 52 STAT.] 75TH CONG. , 3D SESS.-CH. 289-MAY 28, 1938 SEC. 33. CREDIT FOR OVERPAYMENTS. For credit against the tax of overpayments of taxes imposed by this title for other taxable years, see section 322. Part IV-Accounting Periods and Methods of Accounting SEC. 41. GENERAL RULE. 473 Overpayments. Credit. Post, p. 544. Accounting periods and methods of ac- counting. General rule. The net income shall be computed upon the basis of the taxpayer's Net income com- puted on basis of annual accounting period (fiscal year or calendar year, as the case annual accounting may be) in accordance with the method of accounting regularly period. employed in keeping the books of such taxpayer; but if no such method of accounting has been so employed, or if the method employed does not clearly reflect the income, the computation shall be made in accordance with such method as in the opinion of the Commissioner does clearly reflect the income. If the taxpayer's Calendar year, f no other accounting pe- annual accounting period is other than a fiscal year as defined in riod. section 48 or if the taxpayer has no annual accounting period or does not keep books, the net income shall be computed on the basis of the calendar year. (For use of inventories, see section 22 (c).) Antefrp.49. SEC. 42. PERIOD IN WHICH ITEMS OF GROSS INCOME INCLUDED. Gross income. The amount of all items of gross income shall be included in the iPeriod in which gross income for the taxable year in which received by the taxpayer,ems ofincluded unless, under methods of accounting permitted under section 41, any such amounts are to be properly accounted for as of a different period. In the case of the death of a taxpayer there shall be included in Portion in case of computing net income for the taxable period in which falls the date of eath his death, amounts accrued up to the date of his death if not other- wise properly includible in respect of such period or a prior period. SEC. 43. PERIOD FOR WHICH DEDUCTIONS AND CREDITS TAKEN. Deductions and credits. The deductions and credits (other than the corporation dividends For taxable year in paid credit provided in section 27) provided for in this title shall crued" orpaid or i- be taken for the taxable year in which "paid or accrued" or "paid ered p 468. or incurred", dependent upon the method of accounting upon the basis of which the net income is computed, unless in order to clearly reflect the income the deductions or credits should be taken as of a different period. In the case of the death of a taxpayer there shall Allowanceon death be allowed as deductions and credits for the taxable period in which ta falls the date of his death, amounts accrued up to the date of his death (except deductions under section 23 (o)) if not otherwise Ant. p . 463 . properly allowable in respect of such period or a prior period. SEC. 44. INSTALLMENT BASIS. Installment basis. (a) DEALERS IN PERSONAL PROPERTY. -Under regulations prescribed Dealers in personal by the Commissioner with the approval of the Secretary, a person pr who regularly sells or otherwise disposes of personal property on the installment plan may return as income therefrom in any taxable year that proportion of the installment payments actually received in that year which the gross profit realized or to be realized when payment is completed, bears to the total contract price. (b) SALES OF REALTY AND CASUAL SALES OF PERSONALTY.- In the sales of realty and casual sales of per- case (1) of a casual sale or other casual disposition of personal prop- sonalty. erty (other than property of a kind which would properly be included in the inventory of the taxpayer if on hand at the close of the taxable year), for a price exceeding $1,000, or (2) of a sale or other disposi- tion of real property, if in either case the initial payments do not exceed 30 per centum of the selling price (or, in case the sale or other

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