Page:United States Statutes at Large Volume 68A.djvu/79

 CH. 1—NORMAL TAXES AND SURTAXES

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SEC. 118. CONTRIBUTIONS TO THE CAPITAL OF A CORPORATION. (a) GENERAL RULE. — I n the case of a corporation, gross income

does not include any contribution to the capital of the taxpayer. (b)

CROSS R E F E R E N C E. —

For basis of property acquired by a corporation through a contribution to its capital, see section 362. SEC. 119. MEALS OR LODGING FURNISHED FOR THE CONVENIENCE OF THE EMPLOYER.

There shall be excluded from gross income of an employee the value of any meals or lodging furnished to him by his employer for the convenience of the employer, but only if— (1) in the case of meals, the meals are furnished on the business premises of the employer, or (2) in the case of lodging, the employee is required to accept such lodging on the business premises of his employer as a condition of his employment. In determining whether meals or lodging are furnished for the convenience of the employer, the provisions of an employment contract or of a State statute fixing terms of employment shall not be determinative of whether the meals or lodging are intended as compensation. SEC. 120. STATUTORY SUBSISTENCE ALLOWANCE RECEIVED BY POLICE. (a) GENERAL RULE.—Gross income does not include any amount

received as a statutory subsistence allowance by an individual who is employed as a police official by a State, a Territory, or a possession of the United States, by any political subdivision of any of the foregoing, or by the District of Columbia. (b) LIMITATIONS.—

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(1) Amounts to which subsection (a) applies shall not exceed $5 per day. (2) If any individual receives a subsistence allowance to which subsection (a) applies, no deduction shall be allowed under any other provision of this chapter for expenses in respect of which he has received such allowance, except to the extent that such expenses exceed the amount excludable under subsection (a) and the excess is otherwise allowable as a deduction under this chapter.

SEC. 121. CROSS REFERENCES TO OTHER ACTS. (a) For exemption of— (1) Adjustments of indebtedness under wage earners' plans, see section 679 of the Bankruptcy Act (52 Stat. 938; 11 U.S.C. 1079); (2) Allowances and expenditures to meet losses sustained by persons serving the United States abroad, due to appreciation of foreign currencies, see the Acts of March 6, 1934 (48 Stat. 466; 5 U.S.C. 118c) and April 25, 1938 (52 Stat. 221; 5 U.S.C. 118c-l); (3) Amounts credited to the Maritime Administration under section 9 (b)(6) of the Merchant Ship Sales Act of 1946, see section 9(c)(1) of that Act (60 Stat. 48; 50 U.S.C. App. 1742); (4) Benefits under World War Adjusted Compensation Act, see section 308 of that Act, as amended (43 Stat. 125; 44 Stat. 827, § 3; 38 U.S.C. 618); (5) Benefits under World War Veterans' Act, 1924, see section 3 of the Act of August 12, 1935 (49 Stat. 609; 38 U.S.C. 454a); i (6) Dividends and interest derived from certain preferred stock by Reconstruction Finance Corporation, see section 304 of the Act of March 9, 1933, as amended (49 Stat. 1185; 12 U.S.C. 51d); § 121(a)(6)

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