73d C ONGRESS . SESS . II. CH. 277. MAY 10, 1934.
703 treated as a dividend received . Any subsequent distribution made Ra CES ofAX . by the corporat ion out of earni ngs or p rofits fo r such t axable y ear Contd . shall, if distributed to any shareholder who has so included in his subsequent distribu- gross income his pro rata share, be exempt from tax in the amount of the share so included . (e) TAX ON PER SONAL HOLDING COMPANIES . - F or surtax on Personal holding companies . personal holding companies, see section 351 .
Post, p. 751 . SEC. 103. RATES OF TAX ON CITIZENS AND CORPORATIONS OF tra Discriminatory or ex- SEC .
FOREIGN COUNTRIES. Rates when citizens Whenever the President finds that, under the laws of any foreign are subjected by foreign c ountry , cit izens or co rpora tions of the United States are b eing cou ntries to. subjected to discriminatory or extraterritorial taxes, the President Ante, p. 684. shall so proclaim and the rates of tax imposed by sections 11, 12, 13, 20 1(b), and 204 (a) snail, for the taxa ble y ear du ring which su ch proclamation is made and for each taxable year thereafter, be doubled in the case of each citizen and corporation of such foreign country ; but the tax at such doubled rate shall be consid- ered as imposed by section 11, 12, 13, 201(b ), or 204(a ), as the case may be . In no case shall this section operate to increase the P Post, pP731, 733. taxes imposed by such sections (computed without regard to th is section) to an amount in excess of 80 per centum of the net income of the taxpayer. Whenever the President finds that the laws of when foreign laws any fo reign coun try wi th re spect to which the President has made a proclamation under the preceding provisions of this section have be en modified so that discriminatory and extraterritorial taxes applicable to citizens and corporations of the United States have been removed, he shall so proclaim, and the provisions of this section providing for doubled rates of tax shall not apply to any citizen or corporation of such foreign country with respect to any taxable year beginning after such proclamation is made . COMPUTATION Supplement B-Computation of Net Income
OF NET INCOME . [Supplementary to Subtitle B, Part II] SEC. 111 . DETERMINATION OF AMOUNT OF, AND RECOGNITION OF, Gain or loss . GAIN OR LOSS. (a) COM PUT ATI ON OF GAIN OR Loss .-The gain from the sale or Basis for determin- ing, on disposal of oth er disposition of property sha ll be the excess of the amount property- realized therefrom over the adjusted basis provided in section 113 (b) Psi,p° 709. for determining gain, and the loss shall be the excess of the adjusted Adjusted basis . basis provided in such section for determining loss over the amount realized . (b) AMOUNT REALIZED .-The amount realized from the s ale or from Computation posit o other disposition of property shall be the sum of any money received property . plus the fair market va lue of the property (other than money) received . (c) RECOGNITION OF GAIN OR Loss.-In the c ase of a sal e OI' Recognition of gain or loss . exchange, the extent to which the gain or loss determined under this section shall be recognized for the purposes of this title, shall be determined under the provisions of section 112 . (d) INSTAL LMENT SALES .-Nothing in this section shall be con- ablestallment sales tas ° strued to prevent (in the case of property sold under contract pro- viding for payment in installments) the taxation of that portion of any installment payment representing gain or profit in the year in which such payment is received.
