PUBLIC LAWS--CH. 247-JUNE 29, 1939
Credit for overpaid
tax.
Adjustment of basis
for prior years.
48 Stat. 680; 49 Stat.
1648; 52 Stat. 447.
Charitable deduc-
tions of taxpayers
other than corpora-
tions.
Ante, p. 14 .
I.R.C.§23(o)(1)
(2).
For public purposes.
For religious, chari-
table. etc., purposes.
Ante, p. 15 .
I. .C. 23 (q).
Deductions allowed.
Verification.
Ante, p. 6.
Any tax overpaid for any such year shall be credited or refunded,
subject to the statutory period of limitation properly applicable
thereto.
(e) ADJUSTMENT OF BASIS FOR PRIOR YEARS. -In computing
income for any taxable year subject to the provisions of the Revenue
Act of 1934, the Revenue Act of 1936, or the Revenue Act of 1938,
or any of such Acts as amended, the basis, for determining gain or
loss from the sale or other disposition of any property, pledged to
the Commodity Credit Corporation as security on a loan obtained
therefrom, shall be adjusted for the amount of such loan to the extent
it was considered as income and included in gross income for the
year in which received, and for the amount of any deficiency on such
loan with respect to which the taxpayer was relieved from liability.
SEC. 224. CHARITABLE CONTRIBUTIONS TO POSSESSIONS AND
CHARITIES IN POSSESSIONS.
(a) CHARrrABLE DIEDucIONS OF TAXPAYERS OTHER THAN CORPO-
RATIONS.- Section 23 (o) (1) and (2) of the Internal Revenue Code
are amended to read as follows:
"(1) The United States, any State, Territory, or any political
subdivison thereof or the District of Columbia, or any possession
of the United States, for exclusively public purposes;
"(2) A corporation, trust, or community chest, fund, or
foundation, created or organized in the United States or in any
possession thereof or under the law of the United States or of
any State or Territory or of any possession of the United States,
organized and operated exclusively for religious, charitable, scien-
tific, literary, or educational purposes, or for the prevention of
cruelty to children or animals, no part of the net earnings of
which inures to the benefit of any private shareholder or indi-
vidual, and no substantial part of the activities of which is carry-
ing on propaganda, or otherwise attempting, to influence
legislation;".
(b) CHARITABLE DEDUCTION OF CORPORATIONS. -Section 23 (q) of
the Internal Revenue Code is amended to read as follows:
"(q) CHARITABLE AND OTHER CONTRIBUTIONS BY CORPORATIONS.-In
the case of a corporation, contributions or gifts payment of which
is made within the taxable year to or for the use of a corporation,
trust, or community chest, fund, or foundation, created or organized
in the United States or in any possession thereof or under the law
of the United States, or of any State or Territory, or of the District
of Columbia, or of any possession of the United States, organized
and operated exclusively for religious, charitable, scientific, literary,
or educational purposes or for the prevention of cruelty to children
(but in the case of contributions or gifts to a trust, chest. fund, or
foundation, only if such contributions or gifts are to be used within
the United States or any of its possessions exclusively for such pur-
poses), no part of the net earnings of which inures to the benefit
of any private shareholder or individual, and no substantial part
of the activities of which is carrying on propaganda, or otherwise
attempting, to influence legislation; to an amount which does not
exceed 5 per centum of the taxpayer's net income as computed without
the benefit of this subsection. Such contributions or gifts shall be
allowable as deductions only if verified under rules and regulations
prescribed by the Commissioner, with the approval of the Secretary."
SEC. 225. PAN-AMERICAN TRADE CORPORATIONS.
The Internal Revenue Code is amended by inserting after section
151 the following new section:
880
[53 STAT.
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