Page:United States Statutes at Large Volume 56 Part 1.djvu/858

 PUBLIC LAWS-CH. 619-OCT. 21, 1942 Ante, p. 806. 53 Stat. 19. 26U..C. 27; Supp. I, §27. Ante, p. 829. Ante, p. 806. SEC. 133. CREDIT FOR DIVIDENDS PAID ON CERTAIN PREFERRED STOCK. Section 26 is amended by inserting at the end thereof the following new subsection: "(h) CREDIT FOR DIVIDENDS PAID ON CERTAIN PREFERRED STOCcK.- "(1) AMOUNT OF CREDIT.-In the case of a public utility, the amount of dividends paid during the taxable year on its pre- ferred stock. The credit provided in this subsection shall be subtracted from the basic surtax credit provided in section 27. "(2) DEFINITIONS. -As used in this subsection and section 15 (a)- "(A) Public Utility.- T he term 'public utility' means a corporation engaged in the furnishing of telephone service or in the sale of electric energy, gas, or water, if the rates for such furnishing or sale, as the case may be, have been established or approved by a State or political subdivision thereof or by an agency or instrumentality of the United States or by a public utility or public service commission or other similar body of the District of Columbia or of any State or political subdivision thereof. "(B) Preferred Stock.- T he term 'preferred stock' means stock issued prior to October 1, 1942, which during the whole of the taxable year (or the part of the taxable year after its issue) was stock the dividends in respect of which were cumulative, limited to the same amount, and payable in pref- erence to the payment of dividends on other stock." SEC. 134. INCOME IN RESPECT OF DECEDENTS. 55 stt. 897. 26U.. C. , upp. I, (a). GENERAL RULE. -The last sentence of section 42 (a) (relating 142(a). to inclusion in gross income of amounts accrued up to death of tax- payer) is amended to read as follows: "In the case of the death of a taxpayer whose net income is computed upon the basis of the accrual method of accounting, amounts (except amounts includible 53 tat. 69. in computing a partner's net income under section 182) accrued only 26Uv.s .c.C182. Post, p. 84s. by reason of the death of the taxpayer shall not be included in computing net income for the period in which falls the date of the taxpayer's death." s20vU. .C 43. (b) DEDUCTIONS AND CREDITS.-The last sentence of section 43 (relating to deductions and credits accrued up to death of taxpayer) is amended to read as follows: "In the case of the death of a taxpayer whose net income is computed upon the basis of the accrual method of accounting, amounts (except amounts includible in computing a 53 Stat. 69. partner's net income under section 182) accrued as deductions and 26U.S.C. i82. Post, p. 845. credits only by reason of the death of the taxpayer shall not be allowed in computing net income for the period in which falls the date of the taxpayer's death." Anp.81 (c) CROSS REFERENCE.-Section 22 (relating to definition of gross income) is amended by inserting at the end thereof the following: "(1) INCOME OF DECEDENTS. -For inclusion in gross income of certain amounts which constituted gross income in respect of a Post, p. 831. decedent, see section 126." 23 Sat. 12 -§ (d) DEDUCTIONS OF EsTATE. - Section 23 (relating to deductions) supp. I, § 23. is amended by inserting at the end thereof the following: Ante, p. 822. [56 STAT.

�