Page:United States Statutes at Large Volume 42 Part 1.djvu/271

SIXTY-SEVENTH CONGRESS. Sess. I. Ch. 136. 1921. 243 in existence) was derived from sources within the United States as “'°°“ ’“· determined under the provisions of section 217; (b) The amount received as interest upon obligations of the egg, F°d°°°l United States and bonds issued by the War Finance Corporation, which is included in gross income under section 213; (c) In the case of a single person, a personal exemption of $1,000; a:§s°°°I °x°m°` or in the case of the head of a family or a married erson living with husband or wife, a personal exemption of $2,500, imlgss the net income is in excess of $5,000, in which case the personal exemption shall be $2,000. A husband and wife living together shall receive but one 1,,,,,,,, [0, h,,,b,_,,d personal exemption. The amount of such personal exemption shall :5¤<,}0*(*;*’°·**i¤°X°°SS 0* _ e $2,500, unless the aggregate net income of such husband and wife ` ` is in excess of $5,000, in which case the amount of such personal exemption shall be $2,000. If such husband and wife make separate returns, the personal exemption may be taken b either or divided _ _ between them. In no case shall the reduction of the personal exem - ,,,§f“°""“°" °'"°d“°' tion from $2,500 to $2,000-operate to increase the tax, which would be playable if the exemption were $2,500, by more than the amount of the net income in excess of $5,000; mowwm for dg (d) $400 for each person (other than husband or wife) dependent pémiems. upon and receiving his chief support from the taxpayer if such dependent person is under eighteen years of age or is incapable of self-su port because mentally or physically defective. “' N . t mm (e) In the case of a. nonresident alien individual or of a. citizen m.° ° ° °’ entitled to the benefits of section 262, the personal exemption shall P°"*p‘15°7‘ beboinly $1,0%, and he shall not be entitled to the credit provided in su 1v1sion . (f) The credits allowed by subdivisions (c), (d), and (e) of this d£¤°.,tIi? °f mp°y°t section shall be determined by the status of the taxpayer on the last In I d th day of the period for which the return of income is made; but in the Gm ° °° ` case of an individual who dies during the taxable ear, such credits shall be determined b his status at the time of his death, and in such case full credits shall, be allowed to the surviving s ouse, if any, according to his or her status at the close of the period for which such survivor makes return of income. NET rxcoiun or Noximsinnirr ALIEN INDIVIDUALS. N°°"”m°""° °h°°°' Sec. 217. (a) That in the case of a nonresident alien individual 5ng::;r:;s?r°;ig1°%nKfg or of a citizen entitled to the benefits of section 262, the following S‘mjf’;‘}’§· items of gross income shall be treated as income from sources within the United States: - _ mmm on bonds (1) Interest on bonds, notes, or other interestgbearing obligations .,tc_,0m,§ia.,,,a_ ’ of residents, corporate or otherwise, not_ including (A)_ mterest on Ex°°P“°“’· deposits with persons carryingicgi the banlw business paid to persons not engaged in business wit the Um States and not having an office or lace of business therein, or (B) mterest received from a. resident alien individual or a resident foreign corporation when it is shown to the satisfaction of the Commissioner that less than 20 per centum of the gross income of such resident payer has been derived from sources within the United States, as determmed under the provisions of this section, for the three-year period ending with the close of the taxable year of such payor, or for such part 0 such period immediately preceding the close of such taxable year as may e a licable; . . (2§)pThe amount received as dividends (A) from a domestic corpora- mgf{.§°§§$°$f€§,g§ tion other than a corporation entitled to the benefits of section 262, °*°· or (B) from a foreign corporation unless less than 50 per centum of the gross income of such foreign corporation for_ the threexglyear period end` cr with the close of its taxable year preceding the d aration of suchldividends (or for such part of such period as the corpora-