The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-04-19

on for gain or profit, or gains or profits.
ana income derived from any source
whatever. The amount Of oil such items
shall be included In the gross income
for the taxable year in which received
by the taxpayer, unless. under the
methods Of accounting permitted In this
article. any such amounts are 20 be
properly. accounted for AZ OF n different
period but
3.-Docs not include the following
items which shall he exempt from taxa
ton under this article:
A.--4The proceeds OF life insurance
policies and contracts paid upon the death
Of the insured 10 individual beneficiaries
or 10 tn" estate Of the Insured
B.-The amount received by the in
sured as a return of premium or pre-
| rniuiris paid by him under life insur-
ance. endowment or annuity contracts,
either during the term or at the ma
turity OF the torn mentioned in the
contract or upon surrender of the con-
tract.
|. C.--The value OF property acquired
by gift, bequest. devise or descent tbut
the income from such property shall be
| included In gross income).
D.--Interest upon the obligations Of
tho United States or It's possessions. or
securities issued under the provisions
OF tho Federal Farm Loan act Of July
~. 1915; or bonds issued by the War
Finance Corporation; or the obligations
Of the State of New York or OF any
| municipal corporation or political sub
division thereof; or Investments upon
which the tax provided for In section
Ssi OF this chapter has heretofore been
paid since June ]. 1917. during the period
OF years for which such tax shall have
been paid.
10. Any amount received through &C.
cident or health insurance or under
workmen's compensation Acta as COM
| pensation or for personal injuries or
| sickness, plus the amount OF any dam
ages received whether by suit or agree
mont on account OF such injuries or
sickness or through the war risk in
or relief OF injured or disabled mem
bers Of the military or naval forces Of
the United statsa
r. Salaries, wages and other compen.
sation received from the United States
OF officials or employees thereof. inciud-
Ing persons In the military or naval
forces Of the United States.
q. Income received by any OFFICER Of
| q religious denomination or by any in
| stitution, or trust, for moral or mental
Improvement. religious, Bible. tract,
siohary. hospital. infirmary, educational,
scientific, literary. library, patriotic. his
| torical or cemetery purposes, or for the
| enforcement OF laws relating to children
, or animals. OF for two or more of such
| purposes. II such income DO used exclu-
sively for carrying out ono or more OF
suoh purposes but nothing herein shall
be construed to exempt the fees, stipends.
personal earnings or other private In
| come Of such ofiicor or trustee.
raxasisn on Non-Rssadents.
In the case OF taxpayers other than
| residents gross income includes only
the gross income from sources within
tho State. but shall not include an
nuities, interest on bank deposits, in
| tersst on bonds, notes or other interest
bearing obligations or dividends from
| corporations, except TO tho extent Of
| which the same shall be part OF in
come from any business, trade. profess
sion or occupation carried on In this
State subject to taxation under this ar.
.icle.
Deductions TO he Allowed.
| Dsduotions---In computing net in
come there shall be allowed as deduo-
lions:
]. Ali the ordinary and necessary ex-
psnses paid or incurred during the tax
able year in carrying on any trade or
business. including a reasonable allow
anoe for salaries or other compensation
for personal services actually rendered
and including rentals or other payments
required to be made rs a condition TO
the continued use or possession, for pur-
poses OF the trade or business. Of prop
erty to which the taxpayer has not
taken Or Is not taking title or In which
ne has no equity.
| 2. All interest paid or accrued within
the taxable year on Indebtedness; or
in case Of an individual not a resident
OF the State. same proportion OF inter-
est paid or accrued within the taxable
year on indebtedness which the amount
Of such gross income, as herein defined.
hears TO the gross amount OF his income
from all sources within and without the
state
0. Taxes other than income taxes paid
or accrued within the taxable year i'm
posed, firBt, by the authority OF the
United States or OF any Of it's posses
sions, or. second, by the authority OF
any State or Territory. or any county
school district municipality or other
taxing sub-division Of any state OF
Territory. not including those assessed
against local benefits Of a kind tending
to increase the value OF the property
ASSESSED. or. third. by the authority OF
any foreign Government
1. Losses sustained during the taxable
year and not compensated for by incur
anoe Of otherwise, II incurred in trade
or business.
8. Losses sustained during tho taxable
year and not compensated for by an
suranoe or otherwise, II incurred IN any
transaction entered into for profit
though not connected with the trade OF
business; but In the case Of a taxpayer
other than q resident of the State, only
AZ to such transactions within the State
j 9. Losses sustained during the taxable
year Of property not connected with the
trade or business (but In the case OF 0
taxpayer other than a resident. only OF
property within the State) if arising
from fres. storms, shipwrecks or Other
casualty. or from theft, not compensated
for by insurance or otherwise.
Z. Debts RscertAined to be WORTHLESS,
and charged of within the taxable year
Il 8. A reasonable allowance for tho ex.
Ihaustion. wear and tear OF property used
IN thu trade or business. including n rea.
sonaelo allowance for obsolescenne
3. In the case OF mines, oil and gat
wells, other natural deposits and timber
. reasonable allowance for depletion and
for depreciation OF Improvements, 40.
oordink TO the peculiar conditions In
each case, based upon cost. including
cost Of development not otherwise de.
Quoted provided that ir the case OF such
properties acquired prior to January
1919, the fair market value of the prop
trty Tor the Taxpayers interest therein
on that date shall be taken IN lieu Of