1983 iz ‘ TITLE 26.-#···IN TER `persoias to the tax upon Ftheir at->t· ipcome from interest, dividéudgkgnd • _ ~, { 5 i _ (13) In. the casefot a person, amounts qistributed as qivi· t dends to or for his ‘be¤é§t by ·a._corpornt.iou_ organized under the _ Chip; .T1'8d€· Act, 1922, if, `at theftime of auch Ldistribuitiom he ° ié a` `resident of China, and the equitable right to the iueoiing of the shares of stock of the gécrporafion is in good faith vested in . (14) In the case of an individual citizepof the_United~ States, · a bona Ede noaxjesidept of the United ;Stgtes for more than git months`,duri;1g`the·taxab1e year, amounts received from sources · ` withmit. the United States it such amounts constitute earped iueoxpe as defined. in section 209; but suc}; individual shall not be allowed so a deduction from hié gross income any dedtic-t fions op1T0pel'%Q8!l0¢¤ble to QI Qhargeuble agaipst amounts ex; eluded from gross income undenthis paiaagraph. · . - A · (c) Ia the case ot a nonresidentralien ipdivgidual, grosé ineome meai1s_oi1ly.the gmsa income from sources véithiu the United Stht_g;` deterinined under the provisionsof section 217. _ (Feb. 26, 192Q, c. 27, 5 213, 44 Stat. 23.) ' -` Seenote at·begip¤i¤g·ot this chapter. ‘ _ 1 A _ ‘· This tit¤Ie·" mentioned in the text constitutes c. .1_9 ot this sup- _ . plemeatattitle. ·"Sectio;s' 209,212, 217,jud 233,. mentioned in; the ‘ text, are act oat ipjf 940, 953, {958, and 985, respectjyely; of this · supplemental ~ titlej .'1‘he Federal _Fa,x·m 'Loa_u_ Ac? as ameuaea, rereered tojsereln, is. set out in cha. 7;_8, n¤_d -9 oftitle 12, BA§K8 - nm Bnmnia. The ‘World· War \Teter¤us’ Apt, 1924; mentioned in me text, is •et·‘o¤t_ip c. _10 ht Title 38, Pmxsroup, Bquusps Ann \’»:·m:a.ms’ Baum. The Chlnairade Act of 1922, mentioned in the text, is éet out in c4 4 of "1‘tt1e_15, Qoummcp mn . · _ 955{ Computation of net inccmeideductions allowed.?-·(a) In eompptjgg uetiueome there_shall· be allotted as dedu‘ctions‘.:. · " Ordiatzry ea.·pcn.acs_`eZ¢écunred` durinj taxable year; ealarwa; traveling e;vpenaeé,>—·.(1) Alf the- ordinai·y_ and necessary expei1ses'paid or incurred during the taxable year in carrying on any `tiade Ol? business, l including {l.°"1'E!1S(tIiHb1€ allowance for salaries or other compensation for ‘pe tsonal‘ serviceé_ actu5l1y_ _ rendered; uravelingt expenses (jnclaiding .the‘ »euth·e amount expended for omeats and lodging) while away, from home ine
the pursuit of a trade. or business; and‘rentail_sJ or other pay- ·
meats required to be iuaile as a condition to the`c0uti_nued use or poswsaion, for` purposes of the trade `or business, ofprop- - erty to which the taxpayer has- not taken or is not tbklng title . oi· in wl1ieh.·be_has mfequity; · Q _ ‘ ._ · I Interest paid or accrued, dur¤in.g> ta.1:ablc_.year;x awept·i0n.·-Q- (2) ·Al1. interest paid or accrued within the taxa le year on imiebtedrim excegt on iudebtednem incurred or outinued to QllI‘(?}i8S€·0i‘ carry obligatiouaor aecziritiea (otherf than 0btigap tiong of the United States issuegl after September I 24; 1917, and` originally siabscribqd for by thetaxpayer) the interest upon which Ls wholiy,exempffz·om taxation; upder. this title; a Taxes ·pa£d or‘¢mcr~apd during ·ta.z*q-ble' yea·r;—-— 3)· Taxes paid or aeerued witbip the taxable year ekéept ( ) income, warprodts. and excess-pmtits taxes imposedby the authority of the United States; _(B?) so muah of the ipc0i11e,‘wa1·—proiits, and · €X£S€SS·{)l‘0fit$ taxes, impowd ‘by" the authorité of an? foreign; country or posseséim1°of_ the. United States, as is allowed as 8] Cfedit —umler section 222; (C) taxes assessed .agai¤st· local" bezxefitg ot a kiid tending to increase the value ot the property _aSsessed,_ and (D) taxes imposed upoir the taxpayer upon his ` interest as shareholder of a ebrpomtipn, which are paid by the C0?D01‘Hti0I1B%’i§h0ut.1‘BiIDbU?$€lB9~Ht froiu the taxpayer, For the Dm‘1>0s;e of thisi paragraph, eatate, inheritance, legacy, nad gmeesaiou taxes accrue on the .due date thereof except :1s‘otherwise_ _‘ provided by the_law‘0f the jurisglietiim im_p0eing‘ such UQXPS; Losses sastaiozedadudng ta-xablc year and act- compensated.-·— (4) Loseez-s_sastaiuék1.during the taxable·yen1·_ and not com- ‘ `D'@!1$€1t€d for by·ii1sm·auce O1’·0ul€i’\Vi%,'~ it iixctirred iii tradé mj business; '
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NAL REVENUE . I §955 Some.-(5) sustained durlni the taxable ywr and not compmsated for by _ insurance or otherwise, it incurred S Y in any transaction entered ‘into» for pront, though hot connected with the trade or business; but in the msc of anon- ` resident alien individual only it the proqt, if such transaction _ had resulted in a- proilt, woulds be taxable `under this title, g No deduction shall be allowed under this paragraph. 1or[—any" · IQ88 claimed to have been sustained in anysale or other dis-. t position. of shares°ot stock or securities where lt appears that " within thirty days ’beiore or after the date of such sale or ‘ other disposition. theltaxpayer me acquired (otherwise than by bequest or-inheritance) or has entered into a_ contract or option to acquire jsubstantially i,dent·ical property, and the · property so acquired is- held by the taxpayer lor any period l after such sale or other disposition.— It such- acquisition or the contract or . option to acquire is to the extent not part only ot_ substantially identical property, then only a· proportionate part of the loss shall be disallowed; . T _ ’ t Q ‘ - Losses from fires, stomw,· shipwrecks, and so forth.-—(6)
sustained during the taxable year of property not connected`_ with the trade or business (butin, the `casefofla neonresidentj alien individual only property within the _ United,
States) .··lf· arising from fires, storms, shipwreck, or other cass ualty, or from theft, and it not compensated for by insurance or otherwise. The basis for; determining the amount of the. deduction `under this paragraph, or paragraph- (4) or_ (5), shall be thesame asis provided in section for determining _ the-gain or loss from the sale or other disposition ofproperty; Worthless debts charged off wi»tM·a·‘to.ra-ljlo peer; debts re- ‘00]j61TGbl8~ in part.-(7) Debts ascertainedto be worthless. and charged oft within the taxable year (or, in thediscretion of the commissioner, a reasonableaddition to a reserve for bad debts) ; and when satisfied that a debt is recoverable only in. part, the com—m;ssionei* may allow such debt to be charged on in part;, [ `- ·``_ .j t ,._ Ea5h,dustion,· wear and tear ;_ obsolesce·nce [apportionincnt].-——(8) A reasonable allowance for thef-exhaustion, wear and, tear of property used in the trade or business, including a- reasonable allowance for obsolescence. In the case-_ of iniproved real estate held by one person ior life with remainder. to l another person, the deduction provided for in this paragraph shall beyequltably `apportioned between thelife tenant and the `remainderrnan under rules and, regulations prescribed by the commissioner with the approval ot, the Secretary ;_ llllinca, oil and gas uvolle`; depletion and depreciotwn.-—(9} .In the case of mines, oil and gas wells, other naturalldeposits, and timber, a reasonable allowance for depletion and for de: preclation of improvements, according ·to the peculiar condi ·_ ·tions in each case; such reasonable allowance in all to he made under rules Qandregulations to be prescribed by the cone ntissioner, with the aptproval of the· Secretary. In the case of leases theg·deductiox$,`allovsred by this paragraph shall be - equitably apportioned lbetween the lessor and lessee; "_ _ 3 a _ Gonlrtbutiom or g£fts;————(10) Contributions . or gifts made within the taxable year to or for the use of .: (A)· The United States, any State, Territory, or any political subdivision thereof, or- the District ot Columbia,. for exclusively public purposes; (B') <*a;ny corporation, or trust, or community chest, fund, » or foundation, organized and ,opernted exclusively for religious, charitable, scientidc, literary, or educational purposes, or for the prevention of crueltyto children or animals, no part of the , net earnings of which inures to the benetlt of any private shareholder or individual; (C) the special fund for yocational rehabilitation authorized by section 7 of the. Vocational Rehabillts} tion Act; (D) posts or organizations of war veterans. or aux- illary units or societies otjany such posts or organisations. if such posts, organizations, units; orsocietics are organized in the United Stntm or any of its possessions, and- if no part of~thelr
