812
SEVE NTIETH CONGRESS . SESS. I . Cu. 852. 1928 . INCOME TAX
trade or business), but does not include stock in trade of the Property not in- clu ded , taxpayer or other property of a kind which would properly be included in the inventory of the taxpayer if on hand at the close of the taxable year, or property held by the taxpayer primarily for sale in the course of his trade or business . For the purposes of this def inition- Property received on
(A) In determining the period for which the taxpayer an exchange .
has held property received on an exchange there shall be included the period for which he held the property Post, p. 818. exchanged, if under the provisions of section 113, the prop- erty received has, for the purpose of det ermining gain or loss from a sale or exchange, the same basis in whole or in part in his hands as the property exchanged . Period of property
(B) In determining the period for which the taxpayer holding .
has held property however acquired there shall be included the period for which such property was held by any other Post, p. 818. person, if under the provisions of section 113, such property has, for the purpose of determining gain or loss from a sale or exchange, the same basis in whole or in part in his hands as it would have in the hands of such other person . Stock received on re-
(C) In determining the period for which the taxpayer organization distribu- tion . has held stock or securities received upo n a distribution where no gain is recognized to the distributee under the 81 8. Volt, P. Vol.44,p . 113,
h, rovi sions of secti on 112(g) of this title or under the pro- visions of section 203(c) of the Revenue Act of 1924 or 1926, there shall be included the period for which he held the stock or securities in the distributing corporation prior to the receipt of the stock or securities upon such distribu- tion . Collection and pa y- (d) Collection and payment of tax .-The total tax determined ment as other taxes. under subsection (a) or (b) shall be collected and paid in the same mann er, at t he same time, an d subject to the same pro visions of law, including penalties, as other taxes under this title . Sal es of mines and SEC . 102. SA LE OF MINES AND OIL OR GAS WELLS . oil or gas wells . Tax on selling price. (a) In the case of a bona fide sale of mines, oil or gas wells, or any interest therein, where the principal value of the property has been demonstrated by prospecting or exploration and discovery work Ante, p . 797. done by the taxpayer, the portion of the tax imposed by section 12 of this title attributable to such sale shall not exceed 16 per centum of the selling price of such property or interest . Lim itati on . Ante, p . 811 .
(b) For limitation to 121/2 per centum rate of tax, see section 101 . . Exemptions from tax SEC. 103. EXEMPTIONS FROM TAX ON CORPORATIONS . on corporations . Designate d organiza . The following organizations shall be exempt from taxation under tions. this title- Labor, agricultural, agricultnral,
(1) Labor, agricultural, or horticultural organizations ; Mutual sav in gs
(2) Mutual savings banks not having a capital stock repre- banks . se nted by shares ; Frat erna l ben efic iary
(3) Fraternal beneficiary societies, orders, or associations, societies, lodges, etc .
(A) ope rating u nder the lodge s ystem or for the exclusi ve bene- fit of the members of a fraternity itself opera ting under the lodge system ; and (B) providing for the payment of life, sick, accident, or other benefits to the members of such society, order, or association or their dependents ; Domestic building
(4 ) Domest ic build ing and loan ass ociation s substa ntially all and loan ass ociat ions ; cooperative banks . the business of which is confined to making loans to members ; and cooperative banks without capital stock organized and oper- ated for mutual purposes and without profit ;
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