PUBLIC LAWS-CH. 619-OCT. 21, 1942 Joint return. Separate return. 53 Stat. 16 . 26U. .C.. 24(a) (1). Ante, p. 825. 53 Stat. 14 . 26U.S.C. 23(o). 53 Stat. 10 . 26 U.S.C. 22(b) (5). Ante, p. 811 . Ante, p. 825. 53 Stat. 12 . 26U.S.C.§23; Supp. I, §23. Ante, p. 825. "Cooperative apart- ment corporation. " structure or function of the body (including amounts paid for acci- dent or health insurance). "(1) A husband and wife who file a joint return may deduct only such expenses as exceed 5 per centum of the aggregate net income of such husband and wife, computed without the benefit of this subsection, and the maximum deduction for the taxable year shall be not in excess of $2,500 in the case of such husband and wife. "(2) An individual who files a separate return may deduct only such expenses as exceed 5 per centum of the net income of the taxpayer, computed without the benefit of this subsection, and the maximum deduction for the taxable year shall be not in excess of $2,500 in the case of the head of a family, and not in excess of $1,250 in the case of all other such individuals." (b) ITEMS NOT DEDUCTIBLE. -Section 24 (a) (relating to items not deductible) is amended by striking paragraph 1 and inserting in lieu thereof the following: "(1) Personal, living, or family expenses, except extraordinary medical expenses deductible under section 23 (x) ;". (c) CHARITABLE DEDUCTIONs. -Section 23 (o) (relating to deduc- tion for charitable and other contributions) is amended by striking the period at the end of the next to the last sentence and by inserting in lieu thereof the following: "or of subsection (x)." (d) COMPENSATION FROM INsrsANcE. - Section 22 (b) (5) (relat- ing to exclusion from gross income of compensation for injuries or sickness) is amended by striking out "Amounts received" and insert- ing in lieu thereof "Except in the case of amounts attributable to (and not in excess of) deductions allowed under section 23 (x) in any prior taxable year, amounts received". SEC. 128. DEDUCTION OF CERTAIN AMOUNTS PAID TO COOPERATIVE APARTMENT CORPORATION. Section 23 (relating to deductions from gross income) is amended by inserting at the end thereof the following new subsection: "(z) AMOUNTS REPRESENTING TAXES AND INTEREST PAID TO COOP- ERATIVE APARTMENT CORPORATION.- "(1) IN GENERAL.-In the case of a tenant-stockholder (as defined in paragraph (2)), amounts, not otherwise deductible, paid or accrued to a cooperative apartment corporation within the taxable year, if such amounts represent that proportion of the real estate taxes on the apartment building and the land on which it is situated, allowable as deductions under subsection (c), paid or incurred by the corporation, or of the interest paid or incurred by the corporation on its indebtedness contracted in the acquisition, construction, alteration, rehabilitation, or mainte- nance of such apartment building or in the acquisition of the land on which the building is located, which the stock of the cor- poration owned by the tenant-stockholder is 'of the total out- standing stock of the corporation, including that held by the corporation. "(2) DEFINITIONS. -For the purposes of this subsection- "(A) Cooperative Apartment Corporation. - The term 'cooperative apartment corporation' means a corporation- "(i) having one and only one class of stock out- standing, "(ii) all of the stockholders of which are entitled, solely by reason of their ownership of stock in the cor- poration, to occupy for dwelling purposes apartments in 826 [56 STAT.
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