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


such REORGANIZATION, II any. shall be
raid upon notice and demand by the col
lector or the amount OF tax overpaid, X
any, shall be credited or refunded to the
taxpayer In accordance with the pro-
visions OF section asa:
(10) In the case Of mines. oil and gas
wells, other natural deposits. and timber,
a reasonable allowance for depletion and
for depreciation OF improvements, ac-
cording to the peculiar conditions In each
case. based upon cost including cost Of
development not otherwise deducted:
Provided. That in the case of such prop
critics acquired prior to March !. 1913
the fair market value of the property
Cor the Taxpayers interest 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. dis
covered by the taxpayer. on or after
March 1, 1913 and not acquired as the
result Of purchase Of q proven tract or
lease. where the fair market value OF the
property Ia materially disproptrtionate
to the cost, the depletion allowance shall
be based upon the fair market 1alue Of
the property at the date Of the di.covery,
or within thirty days thereafter; such
reasonable allowance In all the above
cases to be made under rules and regu-
lations to be prescribed by the Commits
soner with the approval of this Secre-
tary. In the case OF leases the dedue-
tons allowed by this paragraph shall be
equitably apportioned between the lessor
and lessee;
t11) Contributions or gifts made within
the taxable year to corporations organized
and operated exclusively for religious.
charitable. scientific or educational pur-
poses, or for the prevention of cruelty TO
children or animals. no part OF the net
earnings OF which inures to the beneft
Of any private stakeholder or individual,
or to the special fund for vocational re-
Mobilization authorized by section of
the vocational rehabilitation act. to an
amount not In excess OF IL per centum
Of the taxpayers net income as computed
without the benefit OF this paragraph.
Such contributions or gifts shall be al
lowable as deductions only II verified
under rules and regulations prescribed
by the Commissioner. with the approval
OF the Secretary. In the case OF q nom
resident allen individual this deduction
shall be allowed only as TO contributions
or gifts made to domestic corporations,
or to such vocational rehabilitation fund;
u2) ca At the time OF filing return
for the taxable year 1918 a taxpayer
may file claim In abatement based on
the fact that he has sustained a sub
realized by sale or other disposition)
resulting from any material reduction
mot due to temporary fuctuation) OF the
value OF the inventory for such taxable
year. or from the actual payment after
the close Of such taxable year OF rebates
! In pursuance OF contracts entered into
during such year upon sales made dur
ing such year. In such case payment
OF the amount OF the tax covered by
tHh fot UhAI ~
the claim Is decided, but the taxpayer
shall accompany his claim with bond
In double the amount OF the tax COW
, cred by the claim. with sureties salts
| factory to the Commissioner. conditioned
| for the payment OF any part OF such
tax found to be due. with interest II
any part Of such claim is disallowed
| then the remainder OF the tax due shall
on notice and demand by the collector
be paid by the taxpayer with interest
at the rate OF 1 per centum per month
from the time the tax would have been
due had no such claim been filed. II
| II Is shown to the satisfaction OF the
Commissioner that such substantial loss
| has been sustained, then in computing
the tax imposed by this title the amount
| OF such loss shall be deducted from
the net income. (B) II no such claim,
Is fled. but II is shown to the salts
faction OF the Commissioner that during
the taxable year 1919 the taxpayer has
sustained a substa initial loss Of the char
acter above described. then the amount
of such loss shall be deducted from the
| net income for the taxable year 1918
| and the tax Imposed by this. tale for
| such year shall be predetermined ac-
| cordingly. Any amount found to be due
to the taxpayer upon the basis OF suci,
REORGANIZATION shall be credited or re-
funded to the taxpayer in accordance
with the provisions OF Section c52.
| (b) In the case OF nonresident
alien individual the deductions allowed
G0). GD and clause tE) OF paragraph
80 OF subdivision (a) shall he allowed
| only II and to the extent that they
are connected with income arising from
source within the United States and
the proper apportionment and ALLEGATION
OF tho deductions with respect &c
sources Of income within and without
the United States shall be determined
under rules and regulations prescribed
OF the Secretary.
ITEMS NOT DEDUCTIBLE.
Section 2l5. That in computing net in
come no deduction shall in any case b<
allowed in respect of:
(a) Personal. living or family ex
penses.
(b) Any amount paid out for new
! buildings or for permanent improve
ments or betterments made TO increase
the value OF any property or estate.
Co Any amount expended In Teator
ing property or in making good tht
exhaustion thereof for which an allow
ance is or has been made, or
(d) Premiums paid on any NE in