PUBLIC LAWS-CH. 367-JULY 26, 1939 Interest. Taxes paid, etc. Exceptions. Losses in trade or business. Losses in transac- tions for profit. Intercompany divi- dends. Bad debts. Insurance premi- ums, business proper- ty, etc. Depreciation, etc., of business property. Charitable contri- butions, etc. Post, p. 1091. Proviso. Limitation. Wagering losses. lodging) while away from home in the pursuit of a trade or business; and rentals or other payments required to be made as a condition to the continued use or possession, for purposes of the trade or business, of property to which the taxpayer has not taken or is not taking title or in which he has no equity. (2) INTEREST.- Al l interest paid or accrued within the taxable year on indebtedness. (3) TAXES. -Taxes paid or accrued within the taxable year, except- (A) income taxes; B) estate, inheritance, legacy, succession, and gift taxes; (C) taxes assessed against local benefits of a kind tending to increase the value of the property assessed; but this para- graph shall not exclude the allowance as a deduction of so much of such taxes as is properly allocable to maintenance or interest charges; and (D) taxes paid to any State or Territory on property, business, or occupation the income from which is not tax- able under this title; (4) LOSSES IN TRADE OR BUSINESS.-Losses sustained during the taxable year and not compensated for by insurance or otherwise, if incurred in trade or business, the income from which is subject to taxation under this title. (5) LOSSES IN TRANSACTIONS FOR PROFIT.- Losses sustained dur- ing the taxable year and not compensated for by insurance or otherwise, if incurred in any transaction entered into for profit would be subject to taxation under this title, though not con- nected with the trade or business. (6) INTERCOMPANY DIVIDENDS.-In the case of a corporation, the amount received as dividends from a corporation which is subject to taxation under this title. (7) BAD DEBTS.-Debts ascertained to be worthless and charged off within the taxable year or, in the discretion of the assessor, a reasonable addition to a reserve for bad debts; and when satisfied that a debt is recoverable only in part, the assessor may allow such debt, in an amount not in excess of the part charged off within the taxable year, as a deduction. (8) INSURANCE PREMIUMS.- All fire-, tornado-, and casualty- insurance premiums paid during the taxable year in connection with property held for investment or business. (9) DEPRECIATION.- A reasonable allowance for exhaustion, wear, and tear of property used in the trade or business, including a reasonable allowance for obsolescence; and including in the case of natural resources allowances for depletion as permitted by reasonable rules and regulations which the Commissioners are hereby authorized to promulgate. (10) CHARITABLE CONTRIBuTIONS. -Contributions or gifts actu- ally paid within the taxable year to or for the use of any corpo- ration, or trust, or community fund, or foundation, maintaining activities in the District of Columbia and organized and operated exclusively for religious, charitable, scientific, literary, military, or educational purposes, no part of the net income of which inures to the benefit of any private shareholder or individual: Provided, That such deductions shall be allowed only in an amount which in all of the above cases combined does not exceed 15 per centum of the taxpayer's net income as computed without the benefit of this subparagraph. (11) WAGERING LOssE.- Losses from wagering transactions shall be allowed only to the extent of the gains from such transactions. 1090 [53 STAT.