Page:United States Statutes at Large Volume 53 Part 2.djvu/404

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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.