PUBLIC LAWS-CH. 367-JULY 26, 1939 Gain or loss upon disposition of install- ment obligations. Basis. Transmission at death. Inventories to deter- mine taxpayer's in- come; basis. Requirement. Net income $1,000 or over, if single, etc. Net income $2,500 or over, if married and living with husband or wife. Gross income of $6,000 or over. Husband and wife. Separate return. Joint return. Persons under dis- ability. Fiduciaries. Post, p. 1096. received during any such year on account of sales or other disposition of property made in any prior year shall not be excluded. (d) GAIN OR LOSS UPON DISPOSITION OF INSTALLMENT OBLIGATIONS.- If an installment obligation is satisfied at other than its face value or distributed, transmitted, sold, or otherwise disposed of, gain or loss shall result to the extent of the difference between the basis of the obli- gation and (1) in the case of satisfaction at other than face value or a sale or exchange-the amount realized, or (2) in case of a distribution, transmission, or disposition otherwise than by sale or exchange-the fair market value of the obligation at the time of such distribution, transmission, or disposition. Any gain or loss so resulting shall be considered as resulting from the sale or exchange of the property in respect to which the installment obligation was received. The basis of the obligation shall be the excess of the face value of the obligation over an amount equal to the income which would be returnable were the obligation satisfied in full. This paragraph shall not apply to the transmission at death of installment obligations if there is filed with the assessor, at such time as he may by regulation prescribe, a bond in such amount and with such sureties as he may deem necessary, con- ditioned upon the return as income, by the person receiving any pay- ment in such obligations, of the same proportion of such payment as would be returnable as income by the decedent if he had lived and had received such payment. INVENTORIES SEC. 14. Whenever in the opinion of the assessor the use of inven- tories is necessary in order clearly to determine the income of any tax- payer, inventories shall be taken by such taxpayer upon such basis as the assessor may prescribe as conforming as nearly as may be to the best accounting practice in the trade or business and as most clearly reflecting the income. INDIVIDUAL RETURNS SEC. 15. (a) REQUIREMENT.-The following individuals shall each make under oath a return stating specifically the items of his gross income and the deductions and credits allowed under this title and such other information for the purpose of carrying out the provisions of this title as the Commissioners may by regulations prescribe: (1) Every individual having a net income for the taxable year of $1,000 or over, if single, or if married and not living with hus- band or wife; (2) Every individual having a net income for the taxable year of $2,500 or over, if married and living with husband or wife; and (3) Every individual having a gross income for the taxable year of $5,000 or over, regardless of the amount of his net income. (b) HUSBAND AND wrFE.If a husband and wife living together have an aggregate net income for the taxable year of $2,500 or over, or an aggregate gross income for such year of $5,000 or over- (1) Each shall make a return, or (2) The income of each shall be included in a single joint return, in which case the tax shall be computed on the aggregate income. (c) PERSONS UNDER DISABILrrY. -If the taxpayer is unable to make his own return, the return shall be made by a duly authorized agent or by the guardian or other person charged with the care of the person or property of such taxpayer. (d) FIDucIRBES. -For returns to be made by fiduciaries, see sec- tion 23. 1094 [ 53 STAT.
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