Page:United States Statutes at Large Volume 52.djvu/547

 PUBLIC LAWS-CH. 289-MAY 28, 1938 Purchase, sale, etc., of personal property. Exceptions. Definitions. "Sale" or "sold"; "produced." shall be treated as derived partly from sources within and partly from sources without the United States. Gains, profits and income derived from the purchase of personal property within and its sale without the United States or from the purchase of personal property without and its sale within the United States, shall be treated as derived entirely from sources within the country in which sold, except that gains, profits, and income derived 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.- As used in this section the words "sale" or "sold" include "exchange" or "exchanged"; and the word "produced" includes "created", "fabricated", "manufactured", "extracted", "proc- essed", "cured", or "aged". Charitable,etc., co n- SEC. 120. UNLIMITED DEDUCTION FOR CHARITABLE AND OTHER tributions. CONTRIBUTIONS. Unlimited deduc- tion for. Ante, p. 463. In the case of an individual if in the taxable year and in each of the ten preceding taxable years the amount of the contributions or gifts described in section 23 (o) (or corresponding provisions of prior revenue Acts) plus the amount of income, war-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 the applicable subsection, then the 15 per centum limit imposed by section 23 (o) shall not be applicable. Preferred stock of SEC 121. DEDUCTION OF DIVIDENDS PAID ON CERTAIN PREFERRED certain corporations. STOCK OF CERTAIN CORPORATIONS. Deductionof certain dividends paid, in computing net in- come. Ante, p. 468. Credits against tax. Taxes of foreign countries and U. S. possessions. Allowance of credit. Citizen and domes- tic corporation. In computing the net income of any national banking association, or of any bank or trust company organized under the laws of any State, Territory, possession of the United States, or the Canal Zone, or of any other banking corporation engaged in the business of industrial banking and under the supervision of a State banking department or of the Comptroller of the Currency, or of any incor- porated domestic insurance company, there shall be allowed as a deduction from gross income, in addition to deductions otherwise provided for in this title, any dividend (not including any distribu- tion in liquidation) paid, within the taxable year, to the United States or to any instrumentality thereof exempt from Federal income taxes, on the preferred stock of the corporation owned by the United States or such instrumentality. The amount allowable as a deduction under this section shall be deducted from the basic surtax credit otherwise computed under section 27 (b). Supplement C-Credits Against Tax [Supplementary to Subtitle B, Part III] SEC. 131. TAXES OF FOREIGN COUNTRIES AND POSSESSIONS OF UNITED STATES. (a) ALLOWANCE OF CEDTrr. - If the taxpayer signifies in his return his desire to have the benefits of this section, the tax imposed by this title shall be credited with: (1) CITIZEN AND DOMEST8C CoRPORATION. -In the case of a citizen of the United States and of a domestic corporation, the amount of any income, war-profits, and excess-profits taxes paid or accrued during the taxable year to any foreign country or to any possession of the United States; and 506 [52 STAT.

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