The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-02-07

the income from such property shall be
included in gross income)
90 Interest upon (a) the obligations
Of State, Territory or any political
subdivision thereof. or the District OF
Columbia or OBJ securities issued under
the provisions Of the Federal farm loan
act Of July II, 1915: or (c) the obliga-
lions OF the United States or Its posses
sicns or (dl bonds issued by the War
Finance Corporation: Provided, that
every person owning any OF the obliga-
lions, securities or bonds enumerated in
clauses (a). (b), Co and Id shall. In
the return required by this title. submit
statement showing the number and
amount OF such obligations. securities
and bonds owned by him and the income
/ received therefrom. in such form and
with such information as the Commits
s!oner may require In the case Of obli-
cations OF the United states issued after
! September /. 1917, and in the case OF
bonds issued by the War Finance Cor
poration, the interest shall be exempt
only II and TO the extent provided in the
respective acts authorizing the issue
thereof rs amended and supplemented.
and shall be excluded from gross in
come only II and to the extent 1t is
wholly exempt from taxation TO the tax
payer both under this title and under
Title Ill:
/ (5) The income Of foreign Govern
ments received from investments In the
United States in stocks bonds or other
domestic securities, owned by such for
eign Governments. or from interest on
deposits in banks in the United States OF
moneys belonging TO such foreign Gov
ernments, or from any other source
within the United States;
90 Amounts received. through acct
kaa I,u, md nrl
mems compensation acts. as compensa-
ton for personal injuries or sickness
plus the amount OF any damages received
whether by suit or agreement on ac-
count Of such injuries or sickness
% Income derived from any public
utility or the exercise OF any essential
governmental function and accruing to
any state, Territory or the District OF
Columbia, or any political subdivision OF
TO the government OF any possession OF
the United States, or any political sub
division thereof
Whenever any State, Territory or the
District Of Columbia, or any political
subdivision of a State or Territory. prior
to September 3. 1915, entered in good
faith into a contract with any person
the object and purpose Of which Is 10
acquire. construct. operate or maintain
a public utility. no tax shall be levied
under the provisions OF this title upon
the income derived from the operation
of such public utility, 80 far as the pay
ment thereof will impose loss or bur
den upon such state. Territory, District
of Columbia or political subdivision hut
this provision Ia not intended TO confer
upon such person any financial gain or
exemption or to relieve such person from
the payment OF a tax as provided for in
this title upon the part or portion OF such
income to which such person Is entitled
under such contract;
(S) SO much of the amount received
during the present war by a person in
the military or naval forccs OF the United
States as salary or compel IA ton in any
form from the United Stats for active
services in such forces as does not eN-
coed $500
tc) In the case of ron-res dent alien
individuals gross income includes only
the gross income from sources within the
United states. including interest on
bonds, notes or other interest bearing
obligations OF residents, corporate or
otherwise, dividends from resident corr
porations. and including all amounts re-
ceived (although paid under contract
} for the sale OF goods or otherwise) rep
resenting profits on the manufacture and
disposition OF goods within the United
States.
DEDUCTIONS ALLOWED.
Sec. 3l4 (a) That in computing ne,
income there shall be allowed as deduc-
tlons:
% All tho ordinary and necessary ex-