Page:United States Statutes at Large Volume 56 Part 1.djvu/912

 PUBLIC LAWS-CH. 619-OCT. 21, 1942 Ante, p. 882. Stamp tax exemp- tion. Post, p. 961. 53 Stat. 4. 26U.S.C., ch.1; Supp. I, ch. 1. 63 Stat. 76. 26U.S.. 1 211 (a); Supp. I, § 211 (a). Ante, pp. 807,861 . 53 Stat. 50 . 26 U.S. c.. 117; Supp. I, 8117. Ante, pp. 843-847. 53 Stat. 17. 26U. .c. §25(a) (2). Ante, pp. 811,825. 53 Stat. 10 . 26 .S.C.§22(b) (5). Ante, pp. 811,826 . Ante, p. 819. 53 Stat. 12 . 26U.S.. 23 (b). 53 Stat. 12. 26 U. 8. C., Supp. I,§23(c). Ante, pp. 806, 820, 857. 53 Stat. 13 . 26U.8.C. 23(e) (1), (h). Ante, p. 820. Ante, p. 819. 53 Stat. 14. 26 U. S.0. 23(m), (n). Ante, p.83. 53 Stat. 867. 26U.S.c. 123(a). 54 Stat. 99. 26 U.. c. I23(t). Ante, p. 817. (prior to its amendment by such Act) with respect to such prop- erty. If the property was acquired in a taxable year beginning after December 31, 1941, in any manner described in section 372 (other than subsection (a) (2)) after its amendment by such Act, the basis shall be that prescribed in such section (after its amendment by such Act) with respect to such property." (i) CRoss REFERENCE. -For exemption from stamp tax on certain transactions described in this section, see section 507 of this Act. "SEC. 172. TEMPORARY INCOME TAX ON INDIVIDUALS. (a) The Internal Revenue Code is amended by inserting at the end of Chapter 1 the following new subchapter: "SUBCHAPTER D-VICTORY TAX ON INDIVIDUALS "Part I-Rate and Computation of Tax "SEC. 450. IMPOSITION OF TAX. "There shall be levied, collected, and paid for each taxable year beginning after December 31, 1942 a victory tax of 5 per centum upon the victory tax net income of every individual (other than a nonresident alien subject to the tax imposed by section 211 (a)). "SEC. 451. VICTORY TAX NET INCOME. "(a) DEFINITION. - The term 'victory tax net income' in the case of any taxable year means (except as provided in subsection (c)) the gross income for such year (not including gain from the sale or exchange of capital assets as defined in section 117, or interest allowed as a credit against net income under section 25 (a) (1) and (2), or amounts received as compensation for injury or sickness which are included in gross income by reason of the exception contained in section 22 (b) (5)) minus the sum of the following deductions: "(1) EXPENSES. -The expenses allowable as a deduction by section 23 (a) (1) and (2). "(2) INTEREST.- Interest allowable as a deduction by section 23 (b), if the indebtedness in respect of which such interest is allowed was incurred in carrying on any trade or business, or was incurred for the production or collection of income, or for the management, conservation, or maintenance of property held for the production of income. "(3) TAXES.- Amounts allowable as a deduction by section 23 (c), to the extent such amounts are paid or incurred in connec- tion with the carrying on of a trade or business, or in connection with property used in the trade or business, or in connection with property held for the production of income. "(4) LossES.- Losses (other than losses from the sale or exchange of capital assets) allowable as a deduction under section 23 (e) (1), subject to the limitation provided in section 23 (h). "(5) BAD DEBTS.- The amount allowable by section 23 (k) (1). "(6) DEPRECIATnIN.- T he amount allowable by section 23 (1). "(7) DEPLETION. -The amount allowable by section 23 (m) and (n). "(8) PENSION TRUSTS.- The amount allowable by section 23 (P). "(9) NET OPEATING Loss. -The net operating loss deduction allowable by section 23 (s). "(10) AMolrRZATIoN. - The amount allowable by section 23 (t). "(11) AUMONr. - The amount allowable by section 23 (u). 884 [56 STAT.

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