Page:United States Statutes at Large Volume 43 Part 1.djvu/315

284 SIXTY—EIGHTH CONGRESS. Sess. I. Ch. 234. 1924. ¤¤¤<>¤¤= ‘*¤· United States issued after September 24, 1917, and originally subscribed for by the taxpayer) the interest upon which is wholly exempt from taxation under this_t1tle; ]_,§;’({}1‘§°§',,‘§f""‘°‘ (3) Taxes paid or accrued within the taxable year except (A) income, war—profits, and excess-profits taxes imposed by the authority F°"’i‘““"°s‘ of the United States, (B) so much of the income, wariprofits and excess—profits taxes imposed bg the authority of any fore1gn_country or possession of the United tates as is allowed as a credit under F°"°°°‘ b°“°°tS° section 238, and (C) taxes assessed against local benefits of a kind wN°fmtg1;g§$1ag’r§’¤tB§,? tending to increase the value of the property assessed. In the ease iniipoinrmsr free from of obl1gors specified in subdivision (b) of section 221 no deduction °‘““‘ for the payment of the tax imposed by this title, or any other tax paid pursuant to the tax-free covenant clause, shall be allowed, nor u,,§1&"§§L§,2,?§d§2 shall such tax be included in the gross income of the obl1gee. The deduction allowed by this paragraph shall be allowed in the case of taxes imposed upon a sharehol er of a corporation upon his interest as shareholder, which are paid by the corporation without reim- . bursement from the shareholder, but in such cases no deduction shall t,;`,,Yf‘“°l°f°°t°t°’°t°"' be allowed the shareholder for the amount of such taxes. For the purpose of this paragraph, estate, inheritance, legacy, and SUCCBSZSIOH taxes accrue on the due date thereof except as otherwise provided by law of the jurisdiction imposing such taxes; I"‘“°" (4) Losses sustained during the taxable year and not compensated ,,,I§S“§P,Y,t;‘°g¥i¤BZ$’,t§” for by insurance or otherwise. No deduction shall be allowed under this paragraph for any loss claimed to have been sustained in any sale or other disposition of shares of stock or securities where it appears that within thirtly days before or after the date of such sale or other disposition the taxpayer has acquired (otherwise than by bequest or inheritance) or has entered into a contract or option to acquire substantially identical property, and the property so acquired is held by the taxpayer for any period after such sa e or other disposition, unless such claim is made by a dealer in stock or securities and with respect to a transaction made in the ordinary course of its business. If such acquisition or the contract or option to acquire is to the extent of part only of substantially identical _ property, then only a proportionate part of the loss shall be disiugws '°" ‘°*°"‘““` allowed. The basis for determining the amount of the deduction for ·*-¤¢¤·r>-2¤¤- losses sustained shall be the same as is provided in section 204 for determining the gain or loss from the sale or other disposition of property; W<>¤¤1¤¤¤ ¤¤b*¤· (5) Debts ascertained to be worthless and charged off within the taxable year (or in the discretion of the Commissioner, a reasonable addition to a reserve for bad debts) ; and when satisfied that a debt is recoverable only in part, the Commissioner may allow such debt to be charged off in part; mg§§‘;$”H‘}jm’§§,"gs_d° (6)_ The amount received as dividends (A) from a domestic cor— poration other than a corporation entitled to the benefits of section F { _ { 262, and other than a corporation organized under the China Trade L.m;g§°S%gj°;s¤S;m{;gs{ Act, 1922, or (B) from any foreign corporation when it is shown to the sat1sfaction of the Commissioner that more than 50 per centum ~ of the gross income of such foreign co oration for the three-year period ending with the close of its taxalille vear preceding the declaration of such dividends (or for such part of such period as the foreign corporation has been in existence) was derived from sources _ within the United States as determined under section 217; pY§;§§*;§¤°¤· °*°-· °' ( ;) A reasonable allowance for the exhaustion, wear and tear of property used in the trade or business, including a reasonable Vine: on mus dm_ allowance for obsolescence; b€}fmZ' ’ ($)_ IH U18 CilS€ of IIIIHGS, oil and gas wells, other natural deposits, t,6}§f,‘;‘l§r*;{}ga{Q;¤<};§L$· and timber, a reasonable allowance for depletion and for depreciation of improvements, according to the peculiar conditions in each