S EVEN TIETH CONGRESS . SEss . I. CH. 852. 1928 .
827 the prov isions of th is section, for the three-year per iod
INCO ME TAX endi ncr with the close of the taxable year of such payor preceding the payment of such interest, or for such part of such period as may be applicable, or
From f oreign bank (C) inc ome deri ved by a foreign central bank of issue a cceptanc es . from bankers' acceptances ;
Dividends . (2) D IVIDENDS .- The amount received as dividen ds-
From domestic cor- (A) from a domestic corporation other than a corpora- porations . tion entitled to the benefits of section 251, and other than Exceptions p` 850. a corporation less than 20 per centum of whose gross income is s hown to the sati sfact ion of the Commi ssione r to have bee n de rive d fr om s ourc es within the Un ited States , as dete rmine d unde r the prov isions of this section, for the three-year period ending with the close of the taxable year of such corporation preceding the declaration of such divi- dends (or for such part of such period as the corporation has been in existence), or (B) from a forei gn co rpora tion u nless less than 50 per From foreign cor. porations . centum of the gross income of such foreign corporation for Exception . the three-year period ending with the close of its taxable year prece ding t he de clara tion o f suc h div idends (or for such part of such period as the corporation has been in exi sten ce) was deri ved from sou rces wit hin the United States as determined under the provisions of this section ; (3) PERSONAL SERVICEs .-Compensation for labor or personal Personal services in United States . services performed in the United States ; RENTALS AND ROYAL'rLl;s .-Rentals or royalties from pr0
R entals , roya lties, (4)
h- etc ., from united erty located in the United States or from any interest in such States sources . property, including rentals or royalties for the use of or for the privilege of using in the U nited State s, pa tents , copyrights, secret proc esses and f ormul as, go od wi ll, t rade- marks, trade brands, franchises, and other like property ; and (5) SALE OF REAL PROPERTY.-Gains, profits, and income from Real estate sales. the sale of real property located in the United States .
De ductions the re- (b) Net income from sources in United States,-From the items from o f designate d ex- of gross income spe cif ied in subsection (a) of this section pe nse s, etc, fr om ,
ue there shall be deducted the expenses, losses, and other deductions States sources . p roperl y app ortio ned or allo cated there to and a ratable part of any expenses, losses, or other deductions which can not definitely be allocat ed to so me item or class of gros s income . The rem ai nde r, if any, shall be included in full as net income from sources within the United States . (c) Gross i ncome fr om sourc es witho ut Unite d States .-The fol low- wit ho OroutUnit income States . fro m ing items of gross income shall be treated as income from sources without the United States : (1) Interest other than that derived from sources within the Other interest . United States as provided in subsection (a) (1) of this section
(2) Dividends other than those derived from sources within Other divide nds . the United States as provided in subsection (a) (2) of this section ; (3) Compensation for labor or personal services performed united Labor, ace States wit hout . without the United States ;
Rentals, royalties, (4) Rentals or royalties from property located without the etc ., without United United States or from any interest in such property, including States . rentals or royalties for the use of or for the privilege of using withou t the Un ited Sta tes, pat ents, co pyrights , secret process es and formulas, good will, trade-marks, trade brands, franchises, and other like properties ; and (5) Gains, profits,
L and income from the sale of real property Rea l witho ut estate United te e a States . ces . locate d withou t the Un ited Sta tes . 5453.5 °-29-rr 1 56
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