74TH CONGRESS . SESS. II. CH. 690. JUNE 22, 1936 .
169 1 corporations shall be subject as other persons to the tax upon their net income from interest, dividends, and rents . (h) COMPENSATION OF EMPLOYEES OF FOREIGN GOVERNMENTS.-
Employees of foreign (1) RULE FOR ExcLusIoN .-Wages, fees, or salary of an employee geExemtions , of a foreign government (including a consular or other officer, or a nondiplomatic representative) received as compensation for of ficial servi ces to such gover nment- (A) If such employ ee is not a citiz en of the U nited States
- zenotoeedsi a c
it i- and B If the services are of a character similar to those per- Services similar to ( )
American foreign serv- formed by employees of the Government of the United States ice . in foreign countries ; and (C) If the f oreign gove rnment whose emplo yee i s clai ming E quiva lent e xemp- exem1>tion grants an equivalent exemption to employees of the goon granted by foreign . r
government. Government of the United States performing similar services in such foreign c ountry . (2) CERTIFICATE BY SECRETARY OF STATE.-The Secretary of re C ca eyoftiony
by Sec- State shall certify to the Secretary of the Treasury the names of the foreign countries which grant an equivalent exemption to th e empl oyees of the Gove rnment of th e Uni ted St ates p erform ing services in such foreign countri es, and the character of the services performed by employees of the Government of the United States in foreign countries . SEC. 117. CAPITAL GAINS AND LOSSES.
Capital gains an d losses . (a) GENERAL RULE.-In the case of a taxpayer, other than a cor- Tax computation . poration, only the following percentages of the gain or loss recog- nized upon the sale or exchange of a capital asset shall be taken into account in computing net income 100 per centum if the capital asset has been he ld for not more than 1 year ; 80 per centum if the capital asset has been hel d for more than 1 year but not for more than 2 years ; 60 per centum if the capital asset has been hel d for more than 2 years but not for more than 5 years ; 40 per centum if the capital asset has been hel d for more than 5 years but not for more than 10 years ; 30 per centum if the capital asset has been hel d for more than 10 years . (b) DEFINI TION OF CAPITAL ASSETS .-For the purposes of this Definition0f "capital title, "capital assets" means property held by the taxpayer (whether or not connected with his t rade or business), but does no t include stock in trade of the 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 tax- payer primarily for sale to customers in the ordinary course of his trade or business . (c) DETERMINATION OF PERIOD FO R W HI CH HE LD .-For the purpose Determination of of subsection (a)-
period for which held . P r o (1) In determining the period for which the taxpayer has held a exchange received on property received on an exchange there shall be included the Ante, p. 1682. period for which he held the property exchanged, if under the provisions of section 113, the property received has, for the pur- pose of determining gain or loss from a sale or exchange, the same basis in whole or in part in his hands as the property exchanged . (2) In determining the period for which the taxpayer has held holdngd of property property however acquired t here shall be included the per iod for which such property was held by any other person, if under the provisions of section 113, such property has, for the pur pose of
