63 STAT.] 81sT CONG., 1ST SESS.-CH. 146-IAY 27, 1949 "(9) MEDICAL, DENTAL, AND So FORTH, EXPENSES OF INDIVIDUALS.- Expenses in the case of residents, paid by the taxpayer during the taxable year, not compensated for by insurance or otherwise, for the medical care of the taxpayer, his spouse, or dependents as defined in this article. The term 'medical care', as used in this subsection, shall include amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of diseases, or for the purpose of effecting healthier function of the body (including amounts paid for accident or health insurance): Provided, however, That a taxpayer may deduct only such expenses as exceed 5 per centum of his adjusted gross income: And provided further, That the maximum deduction for the taxable year shall not exceed $1,250." SEC. 408. Section 3 (a) (13) of title III of article I of said Act is amended to read as follows: "(13) In lieu of the foregoing deductions, any resident may irrevo- cably elect to deduct for the taxable year an optional standard deduc- tion of 10 per centum of the net income or $500, whichever is lesser: Provided, however, That the option provided in this subsection shall not be permitted on any return filed for any period less than a full calendar or fiscal year." SEC. 409. Section 3 (a) of title III of article I of said Act is amended by adding thereto a new subsection to read as follows: "(15) REASONABLE ALLOWANCE FOR SALARIES.- A reasonable allow- ance for salaries or other compensation for personal services actually rendered: Provided, however, That in the case of an unincorporated business the aggregate deduction for services rendered by the indi- vidual owners or members actively engaged in the conduct of the unin- corporated business shall in no event exceed 20 per centum of the net income of such business computed without benefit of this deduction: Provided further, That nothing herein contained shall be construed to exempt any salary or other compensation for personal services from taxation as a part of the taxable income of the person receiving the same." SEC. 410. Section 4 of title IV of article I of said Act is amended to read as follows: "SEC. 4. INSTALLMENT SALES.-If a person reports any portion of his income from installment sales for Federal income-tax purposes under section 44 of the Federal Internal Revenue Code and as the same may hereafter be amended, and if such income is subject to tax under this article, he may report such income under this article in the same manner and upon the same basis as the same was reported by him for Federal income-tax purposes, if such method of reporting is accepted and approved by the Commissioner of Internal Revenue. SEC. 411. Subsections (a) and (b) of section 2 of title V of article I of said Act are amended to read as follows: "(a) RESIDENTS AND NONRESIDENTS. -Every nonresident of the Dis- trict receiving income subject to tax under this article and every resi- dent of the District, except fiduciaries, when- "(1) his gross income for the taxable year exceeds $4,000; or "(2) his gross sales or gross receipts from any trade or business, other than an unincorporated business subject to tax under title VIII of this article, exceeds $4,000, regardless of the amount of his gross income; or "(3) the combined gross income for the taxable year of hus- band and wife living together exceeds $4,000 and each spouse has a gross income in excess of $500, or the gross sales or gross receipts received or accrued by such husband and wife from any trade or business, other than an unincorporated business subject to tax under title VIII of this article, in the aggregate exceeds 131 "Medical care." Deductions. 61 Stat. 338. D. O . Code, Supp. VII, 5 47-1557b (a) (13). Optional standard deduction. 61 Stat. 337. D. C . Code, Supp. VII, § 47-1557b (a). Restrictions. 61 Stat. 340. D. C . Code, Supp. VII, i 47-1561c. 63 Stat. 24. 26U. .0. §44. 61 Stat. 341. D. C. Code, Supp. VII, 147-1564a (a), (b). 61 Stat. 345. D. C. Code, Supp. VII, §§47-1574 to 47- 1574e.