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


the case of foreign corporation. thu
proportion OF such interest which tina
amount OF it's gross income from sources
within the United States bears to tho
amount Of It's gross income from all
sources within and without the United
States;
(3) Taxes paid or accrued within tho
taxable year imposed ta) by the au-
thority OF tho United States, except In
come, war profits and excess profits
taxes; or (b) by the authority OF any
OF its possessions. except the amount N
income, war profits and excess prof,ts
taxes allowed as a credit under section
23S: or (c) by the authority of any Stats
or Territory, or any county, school dis
trict municipality. or other taxing sub
division Of any state or Territory. not
including those assessed against local
benefits Of kind tending to Increase tho
value of the property assessed or td)
in the case of domestic corporation, By
the authority OF any foreign country,
except the amount Of income. war profits
and excess profits taxes allowed as a
credit under section 23S: or te) In the
case Of a foreign corporation. by the nu.
thority OF any foreign country Except
income, war pronts and excess profits
taxes and taxes assessed against local
dement's OF a kind tending to increase tho
the property or business: Provided, That
in the case OF oblisors specified in sub
division (b) of section 22l no deduction
for the payment of the tax imposed By
this title or any other tax paid pursuant
to the contract or provision referred 10
In that subdivision. shall be allowed:
az Losses sustained during the tax
able year and not compensated for by In
surance or otherwise
(5) Debts ascertained to he worthless
and charged of within the taxable year;
(6) Amounts received as dividends
from a corporation which Ia taxable UNI
der this title upon Its net income, and
amounts received as dividends from 9
personal service corporation out Of earn.
inge or profits upon which income tar
has been imposed by act of Congress;
(7) A reasonable allowance For the
exhaustion. wear and tear OF property
used In the trade or business including
| a reasonable allowance Tor obsolcsCence
Isl In the case Of buildings ma
chnery. equipment. or other facilities
constructed erected installed. ar.
auired, on or after Apri! 6, 1915. for the
| production of articles contributing 20 the
| prosecution OF the present war, and IN
| the case Of vessels constructed or &C.
ouired on or after such date for the
| transportation OF articles or men cor
/
| ent war. there shall be allowed a reason
| able deduction for the amortization ot
such part Of the cost Of such facilities
| or vessels as has been borne by the tay-
! payer. but not again including ary
amount otherwise allowed under tbs
| title or previous acts of Congress as 4
! deduction in computing net income. Al
! any time within three years after the
, termination OF the present war the Com
a,,l af hn ~ IA
I taxpayer shall. reexamine the return,
| and II he then flnds as a result Of an
| appraisal or from other evidence that the
deduction originally allowed was incor-
! rect, the taxes imposed by this title and
/ by Title III. for the year or years az
! fected shall be predetermined; and the
amount Of tax due upon such redeter1n-
! nation. II any, shall be paid upon notice
: and demand by the collector. or the
amount Of tax overpaid, IL any. shall be
credited or refunded to the taxpayer In
/ accordance with the provisions OF sec
! ton 252.
go In the case Of mines oil and gas
wells, other natural deposits. and tim
! Der. r. reasonable allowance for deple-
! ton and for depreciation OF improve
ments. according TO the peculiar condi-
! tons in each case. based upon cost In
! Guiding cos, Of development not other
wise deducted: Provided. That In the
case OF such properties acquired prior
I TO March !. 1918. the fair market value
/ OF the property COR the taxpayers In
terest therein) on that date shall be
taken IN lieu OF cost UP to that date ::
| Provided further. That in the case OF
mines, oil and gas wells. discovered by
| the taxpayer. on or after March !, 1913,
and not acquired as the result OF pur-
| chase OF a proven tract or lease, where
/ the fair market value OF the property Is
materially disproportionate to the coS'.
| the depletion allowance shall be based
upon the fair market value OF the prop
erty at the date OF the discovery, or
within thirty days thereafter; such rea'
| sonable allowance in all the above cases
! to be made under rules and regulations
TO be prescribed by the Commissioner
with the approval OF the Secretary In
the case OF leases the deductions al
lowed by this paragraph shall be equn-
ably apportioned between the lessor and
lessee:
u0) In the case OF insurance COM
| panies, in addition to the above: (al
The net addition required by law 70 b.
made within the taxable year to reserve
funds Nncluding in the case OF assess
| ment insurance companies the actual de-
post OK sums with State or territorial
officers pursuant to law as additions n
guarantee or reserve funds) ; and 90
the sums other than dividends pad
within the taxable year on policy and
annuity contracts:
Cl) In the case OF corporations issu-
ing policies covering life, health and ac-
| cident insurance combined In one policy
! issued OF the weekly premium pavn'Ant
plan continuing for life and not subject
! to cancellation, in addition to the above,
such portion of the net addition Cnot re-
quired by law made within the taNah,e
year to reserve funds as the Comm.s-
sioner finds TO be required for tho pro-
lection OF the holders OF such p0.!p.es
only;
C?) In the case OF mutual marine IN
surance companies. there shall be al
lowed, in addition to the deductions al
lowed in paragraphs % to Go>, ~
elusive. amounts repaid 10 policy holders
on account OF premiums previously pad
by them, AMI interest paid upoa si-A
amounts between the ascertainTeNt and
the payment thereof
OLD In the case o: mutual insurance
companies (other than mutual life OF"
mutual marine insurance companies 70
curing their members to make premium
deposits TO provide for losses and OK
penses. there shall be allowed ~ ttd
ton 10 the deductions allowed ~ para
graphs % to G0). inclusive, iu~.oss
otherwise allowed under such para
graphs) the amount OF premium !e-
posts returned to their policy holders
and the amount of premium deposits r.
tained for the payment OF losses cN-
penses and reinsurance reserves;
Qb ca At the time OF flirg return
for the taxable year 1915 a Taxpayer
may file claim In abatement hasei on