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Page:United States Statutes at Large Volume 61 Part 1.djvu/360

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PUBLIC LAWS--CH. 258 -JULY 16, 1947 Post, p. 338. Post, p. 338. Ante, p. 335 . Obligations of a State, etc. Rental value of min- ister's dwelling, etc. Post, p. 345. Post, p . 346. payment under a life-insurance, endowment, or annuity contract, or any interest therein, as, under section 3 (a) (10) of this title, is includible in the gross income of the recipient. (B) EMPLOYEES' ANNUITIES.-If an annuity contract is purchased by an employer for an employee under a plan with respect to which the employer's contribution is deductible under subsection 3 (a) (11) of this title, the employee shall include in his income the amounts received under such contract for the year received except that if the employee paid any of the consideration for the annuity, the annuity shall be included in his income as provided in subsection 2 (b) (2) (A) of this title, the consideration for such annuity being considered the amount contributed by the employee. In all other cases, if the employee's rights under the contract are nonforfeitable except for failure to pay future premiums, the amount contributed by the employer for such annuity contract on and after such rights become nonforfeitable shall be included in the income of the employee in the year in which the amount is contributed, which amount together with any amounts contributed by the employee shall constitute the consid- eration paid for the annuity contract in determining the amount of the annuity required to be included in the income of the employee under subsection 2 (b) (2) (A) of this title. (3) GnITS, BEQUESTS, AND DEVISES. -The value of property acquired by gift, devise, or inheritance (but the income from such property shall be included in gross income). (4) TAX-FREE INTEREST. -Interest upon (a) the obligations of a State, Territory of the United States, or any political subdivision thereof, or the District of Columbia; and (b) obligations of the United States, its agencies, or instrumentalities. (5) COMPENSATION FOR INJURIES OR SICKNESS. -Amounts received, through accident or health insurance or under workmen's compensa- tion or employer's liability acts, or by way of damages for personal injuries, whether by suit or agreement. (6) IN THE CASE OF MINISTERS.- The rental value of a dwelling house and appurtenances thereof furnished to a minister of the gospel as part of his compensation. (7) INCOME EXEMPT UNDER TREATY.-Income of any kind to the extent required by any treaty obligation of the United States. (8) INCOME OF FOREIGN GOVERNMENTS. (9) PAYMENTS MADE UNDER LAWS RELATING TO VETERANS.-Payments of benefits made to or on account of a beneficiary under any of the laws relating to veterans. (10) INCOME FROM UNINCORPORATED BUSINESS.-In the case of any person entitled to a share in the net income of any unincorporated business subject to tax under the provisions of title VIII of this article, an amount equal to the proportionate share of such person in such part of such net income as is in excess of the exemption provided in section 4 of said title VIII: Provided, however, That such part so excluded from the gross income of such person shall be reported by and taxed against the unincorporated business under the provisions of title VIII of this article. (11) CAPITAL GAINS.- - Gains from the sale or exchange of any capital asset as defined in this article. (12) PERSONAL SERVICES. - If at least 80 per centum of the total com- pensation for personal services covering a period of thirty-six calendar months or more (from the beginning to the completion of such services) is received or accrued in one taxable year by an individual or a partner- ship, the tax attributable to any part thereof which is included in the gross income of any individual shall not be greater than the aggregate of the taxes attributable to such part had it been included in the gross 336 [61 STAT.