827 TITLE 26.-i—·INTJ Nexium m tiring tsxanle yur; ioslm in@ed; expenns inwrral.-—··—(a) In lien of the taxes igipgggdiby sections @ and‘981 of this title, tngohallkbe §»_;x·ig~<1: wld for meh tamble yen; in n me me 3w,m of every lmrance company (other than n life on one unl insn·:~nnoe company} .a tax an follows: _· ` tl} in the case of meh a company the some peréentage ivfits not income no is imposed upon other {·m·;¤»rntienW:_g?t1y sectie!1`981 of this title; V _ {QL In the use of such w forelm insnrnnce company the num- percentsse of its income from sources within the Tmmd States as is impomd upon the net income ot other mégjomaltions by section 981 of title; _ _ `_ I _ `Q qw in the case oi an luminance eompany subject to the tnxw im;ws,ed`b? t§is set:d0n·——_ _ · _ ,__ Y {1) The term " income "’ mean; the combined .g1%>¤i nnmnnt/earned dnring the tuxgble- year, from investment in-
come and from underwriting. iam , an proiided in this suba1vini<»n,` computed on theybesis of the nnderwrlting and inwsxment exhibit of the enum! statement approved by _ the
Nationall Convmtion ot Insnrnnce Com¢lssioner§; · ‘ ·‘ $2) The term -_" net 'income ” ineens the gross ineome gas de- · Sued in paragraph (1) of thin subdivision less the deductions allowed by s_e_ction 1007; jo · »' _ . __ . . (3) The `term “ investment_ income "» mans the gross amount gynoome earned dating the taxable year` from interest; dhildends and rentmcomputed as follows: A , - .. z _ — ` To all inteteét, dividends and rents .»·ecn»·ea’ duging thentnxame year, add interest,. myxoenos. and ments due n‘n.d”accrued tat the end of the taxable year, and deduet all interest, ;di$*i4 , dends and tems due and acorued nt the end of__t11e._ preceding taxable year; ‘ 1 . · o . .' _ ·· ” `(4)’“ The term "‘underwriting income" means the premiums onrnod on insurnnce’ contracts during the taxable year less _ lo$ses_int·u:·red and expenses incurred; _ __ __ S ‘ _ ` { fii) .Theg term “px·emiu1ns {earned ~on insurance contracts during the taxable year meane .an` amount wzomputed as f¤»1l0w’é:· t _· - " e ·_ 2 From the amount off gross. premiums written on insurance `contnncts, during, the taxable year, dednctf · return premiums and premiums ~ pnidj for reinsurance. To therresnlt so obgnined add unearned premiums on outstanding business ntjtho tend of the preceding taxable year and deduct unearned minms on outstanding business at the B!1d(0f the ‘taxable"yeaf; ` (6)- The term Homes ineu1:red" naeans losses incurred dmt- _ing· the tuxsble year on insurance, contracts, computed as ¤m1e·•.w¤:_- _ _ · . I wi V I -¤ ' To iosem mldéduring the taxable year, edd salvnge and reinsurance. recoverable ontstanding et the end of tHe preceding taxable year; and deduct sdlvnge End reinsurance recoéerable ontmanding at the end of the taxable ymr. the result so obtained: add elf unpaid lowes outstanding at the end of the “ taxable year and dednot unpaid losses outstanding at the end ’ot the preceding tnxnbleaear; 5 ~j » - . · (7) The term " expenses 1¤curred·" means all expenses shown on the annual statement approved by the National Convention . ot Insurance Commissioners, and shell beecomputed as follows: . To, all expe& paid dnring the taxable year edd expenses unpaid at the end of the tunable year and deduot. expenses unpaid —. at the end ot the meoeding taxable year. , For the purpose of conmnting the not 'ixwome subject to the tax imposed _ by this swtion there shall M »deduct@ from expenses incurred as donned in this pamgrupln t all eipenaen fincurred which are . not allowed as deductions by section 1007 ot this title; (June 2, 1924, 4.01 p. m., c. 84, I *248,43 Stat. @0.) · ‘ · IM?. Same; not inwpe; wmmntina; deduction:.-—-(a) In computing the net incom of an inenrnnceoompany subject to
ETRNAL nsvnwvn 1023 the tax imposed by section 1006 ofnthis title there shell be allowed as tleductiotts: . _ s (1) All·-ordinnry and necessary expenses lneurretl, as pro- · vided in paragraph (.1) ot subqirlsion (n) of section, 986 of this tit1e;"-. _ i · (2) All interest as provided in paragraph (2) of subdivision (a) of section 986 of this title; " » ‘ A _(3) Tanes as provided in paragraph (3) of subdivision (a) of section 986 of this titlei ‘ ” 9 (4) Losses incurred; » .. • _ (5) Bad debts in the nnture of ngeney belnnees and bills receivable ascertained to be worthless and charged e3 within ` the taxable year; Y " _ _ " (6) The amount received as dividends from corporations as provided in paragraph (6) ot subdivision `(n) of section @8 , of__this·‘title; _' _ ’ ’ . ` . (7) The amount ot interest earned 'dnring the tnxnble year 3 which under peragaph (4) of subdivision (b) of section 954, oi this title is exempt from taxation under this chapter, and the cumount oi interest allowed es he credit under section 9@ of ”this_title;‘ " - _ ’· . - _ _ A .
(-8) A reatsonnble `allowance for the exhnustiony weér and
tear of property, ns provided in paragraph (7) of subdivision (:1) otsectiou of this tit1e;.- __ .» . .- (9) In the case of suéh a domestic insurance com-pany, tho net income of `whlch (computed without tlrebenent oéthis para graph) is $25,000 er`1ese,— the sum of $2,000; bnt; if the net in! i, come is more than $25,000 the tax imposed by seetipn 1006 of 4 this title shall not [exceed the ‘ tax which would .be payable - iftthe `$2,000"eretlit were allowed; plus the amount or the net inedme in excess of $25,000. . - · _ i _ E ·(l.i)`In.tl1e case of n foreign corporation the dedqctioes nllowed in this section shall be allowed to the extent provided _ in snbdiyision (b) of section 9S6—of.this title. -. ~ - (c)` Nothing in this section or in section 1006 of this title shall I be construed to permit the same item to.be twice deéiucted. (June l2, 1924, 4.01 ix. in., c. 234, 9 247, 43 Stat. 291.) ` , Part IV.-·-ADMINISTRgTlVE PRQVISIONS . 1021. Dividend returns; contents; rerinention.-—·Every cors- ` poration subjeet° tot the tax imposed by this- chapter shall, · when required by · the _Commissioner· of ,Internnl Revenue, rengler a` correct return, only-reri¤ed· under yoeth, et its pay- ments of. dividends, stating the ;nnme and ndglrem of - each. shareholder, the number of shares owned by him, and the ` amount ofdivldends paid- to him. (June 2, 1924, 4.01 p. m., e. 234,.§-254, 43 Stat, 292.), jr ‘ »_ ‘· ; . _ ’ - ‘ · 1022,* Brokers returns; contents; verincntione-——Erery person doing business es, el broker shall, when reqniredrby the Com-‘ lmissioner of Internet Revenue, render n correct return only _ - verined under oath, . under snclr mlm and regulations ns the- » said commissioner, with the‘npprorn1_o·f"the Secretnry of tne · Treasury, may` prescribe, showing the names Aof"eus,tomers for whom such person hes transacted any business, with such details ns. to the prohts, losses, or other' information which the commissioner‘m¤“§r require, as to each of such customers, ns will rennble the commissioner to determine whether ell income that due on profits or gains of such customers has been paid. » (June 2, 1924,4.01p. ni., c. 234, { 255, Stat. 292.) J · `1628,·Retums by employers; lduciaries, lessees ‘ mortgagors, etc.; ; amount; contentst—#·-All persons, in whatever cnpncity-noting, including lessees or mortgngors ot, reel ofper- ‘ sons! property, Hd"nc{arles,·nnd employers, making payment to , another person, of interest, rent, salaries, wages, premiums, annuities, eompéusations, renmnerations;einolninents, or other fixed or determinnble,gnins,_protits, nm} income ( other than psy- 1 ments described inf sections 1021 and 1022 ot this title, `ot
