Page:United States Statutes at Large Volume 68A.djvu/197

 CH. 1—NORMAL TAXES AND SURTAXES

157

which is issued on a discount basis and payable without interest at a fixed maturity date not exceeding 1 year from the date of issue, the amount of discount at which such obligation is originally sold shall not be considered to accrue until the date on which such obligation is paid at maturity, sold, or otherwise disposed of. (c) M A T U R E D UNITED STATES SAVINGS B O N D S. — I n the case of a taxpayer who— (1) holds a series E United States savings bond at the date of maturity, and (2) pursuant to regulations prescribed under the Second Liberty Bond Act retains his investment in the maturity value of such series E bond in an obligation, other than a current income obligation, which matures not more than 10 years from the date of maturity of such series E bond, the increase in redemption value (to the extent not previously includible in gross income) in excess of the amount paid for such series E bond shall be includible in gross income in the taxable year in which the obligation is finally redeemed or in the taxable year of final maturity, whichever is earlier. This subsection shall not apply to a corporation, and shall not apply in the case of any taxable year for which the taxpayer's taxable income is computed under an accrual method of accounting or for which an election made by the taxpayer under subsection (a) applies. Subpart C—Taxable Year for Which Deductions Taken Sec. 461. General rule for taxable year of deduction. Sec. 462. Reserves for estimated expenses, etc. SEC. 461. GENERAL RULE FOR TAXABLE YEAR OF DEDUCTION. (a) GENERAL RULE. — The amount of any deduction or credit allowed by this subtitle shall be taken for the taxable year which is the proper taxable year under the method of accounting used in computing taxable income. (b) SPECIAL RULE I N C A S E OF D E A T H. — I n the case of the death of a taxpayer whose taxable income is computed under an accrual method of accounting, any amount accrued as a deduction or credit only by reason of the death of the taxpayer shall not be allowed in computing taxable income for the period in which falls the date of the taxpayer's death. (c) ACCRUAL OP R E A L PROPERTY T A X E S. —

(1) IN GENERAL.—If the taxable income is computed under an accrual method of accounting, then, at the election of the taxpayer, any real property tax which is related to a definite period of time shall be accrued ratably over that period. (2) SPECIAL RULES.—Paragraph (1) shall not apply to any real property tax, to the extent that such tax was allowable as a deduction under the Internal Revenue Code of 1939 for a taxable year which began before January 1, 1954. In the case of any real property tax which would, but for this subsection, be allowable as a deduction for the first taxable year of the taxpayer which begins after December 31, 1953, then, to the extent that such tax is related to any period before the first day of such first taxable year, the tax shall be allowable as a deduction for such first taxable year. § 461(c)(2)

�