Page:United States Statutes at Large Volume 39 Part 1.djvu/780

SIXTY-FOURTH CONGRESS. Sess. I. Ch. 463. 1916. 759 States during the term for which he has been elected and e °u ’”°°” Tuof the Supreme and inferior courts of the United States noviihinloiiligigs Sum °m' al;gt;.he1c0r{)1(¥1>ensatio;ihof al} 0IIl0GI'i8.1'1g emplcilyees of a State, or any ` ca su 1v1sion ereo exce w en suc com nsation is ' liy the United States Governmenlia. P6 Pwd nnnncrrons ALLOWED. D¤*¤¢*1¤¤¤¤¤¤W··1· Sec. 5. That in computing net income in the case of a citizen or °”·*"”’°"°°"""“~ resident of the United States- { (a) For the purpose of the tax there shall be allowed as deduc- °"’°°‘“¥’°°m°‘* ions- First. The necessary e enses actual] aid in c in on an B‘“‘“°“°‘T’°'“°°· business or trade, not incl{1i)din personalfrlig , or f§ily Second. All interest paid the year diighis indebtedness; 1“'““‘“ °“ "°"‘°· Third. Taxes paid within the year imposed by the authority of the °°°“°“““* United States, or its Territories or possessions, or any foreign country, or under the authority of an State, county school district or municipality or other taidn subehvision of any State, not including those assessed against local benefits; Eourth. Losses actually sustained during the year, incurred in his I‘°“°°· business or trade, or arisinvghfrom fires, storms, shipwreck, or other casualty, and from theft, en such losses are not compmsated for by insurance or otherwise: Provided, That for the purpose of ascer- 5§°,,'Z,°,;,.,, ,,,,,,, taining the loss sustained from the sale or other displosition of prop- ‘>•=*¤r M¤¤111ii31& erty real, personal, or mixed, acquired before Marc first, nineteen hundred and thirteen, the fair market (price or value of such property as of March first, nineteen hundred an thirteen, shall be the asis for determining the amonmt of such loss sustained; N t M W, Fifth. In transactions entered into for profit but not connected imag. °°m`°° th with his business or trade, the losses actually sustained therein during the year to an amount not exceeding the Hronts arising therefrom; W rm Sixth, Debts due to the taxpayer actua y ascertained to be worth- ° °“°°b"‘“ less and charged oil within the year; Seventh. A reasonable allowance for the exhaustion, wear and tear .,g`Tt"i°'°t’°°°'p'°"‘ of groperty arising out of its use or employment in the business or tra e; Eighth. (a) In the case of oil and (gas wells a reasonable allowance g£‘ii‘Z,l'{,,‘T“°°'°'°'* ““‘ for actual reduction in flow and (pro uction to be ascertained not by the flush flow, but by the settle production or regular flow- Cb) in Mm d·P*¤¤¤¤· the case of mines a reasonable allowance for depletion thereoinot to exceed the market value in the mine of the product thereof, which has been mined and sold during the year for which the return and com- · putation are made, such reasonable allowance to be made in the case of both (a) and (b) under rules a lations to be prescribed by _ the Secretary of the Treasury: P , That when_t e allowances {gm; ,,,,,,,,, authorized in (a) and (b) shall equal the capital originally invested, 1.1111% or in case of purchase made prior to March first, nineteen hundred and thirteen, the fair market value as of that date, no further allow- Be ance shall be made. No deduction shall be allowed for any amount ,,h,d,§,{"""""*·°°'**°"‘ paid out for new buildings, permanent improvements, or betterments, made to increase the value of any {property or estate, and no deduction shall be made for any amount o expense of restoring property or making good the exhaustion thereof or which an allowance is or has been made. cnmnrrs nmwnn. °u°w°d` For the urpose of the normal tax only, the income embraced p`2§E in (aigpersonal rldturn shall be credited with the amount received as ‘“· dividends upon the stock or from the net earnings of any corporation,