New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-16

scribed by the commissioner with the
approval of the secretary"
. Section POS. Section 2O5 of the rev.
Ienue act of 1918 is amended to read
as follows:
Sec. 205. (a) That If taxpayer
makes returns for fiscal year be-
ginning in 1920 and ending in 1921 his
tax under this title for the taxable
year 1921 shall be the sum of: G)
The same proportion of tax for the
entire period computed under this
title Gas in force prior to the passage
OF the revenue act Of 1920 at the rates
for the calendar year 1890 which the
portion of such period FILLING within
the calendar year 1920 is of the entire
PERIOD and l2) the same proportion of
tax for the entire period computed
under this title at the rates for the
calendar year 1921 which the portion
of such period falling within the cal
cndar year 1921 is of the entire period:
provided that in the case of personal
service corporation the amount to be
paid shall be only that specified in
clause (2).
ANY amount heretofore or herea flor
paid on account of the tax imposed for
such fiscal year by this title as in force
prior to the passage Of the Revenue act
of 1921 shall be credited toward the
payment of the tax imposed for such
fiscal year by this act, and if the
amount so paid exceeds the amount of
such tax imposed by this act, the excess
shall be credited or refunded in ac-
cordance with the provisions of Sec
ton 252.
"(b) If fiscal year of a partnership
begins in 1920 and ends in 1921, then
% the rates for the calendar wear
during which such fiscal year begins
shall apply to an amount of each parf-
ner's share of such partnership net in
come determined under the law appli
cable to such year) equal to the pro-
portion which the part Of such fiscal
year failing within such calendar year
bears to the full fiscal year, and (2) the
rates for the calendar year during
which such fiscal year ends shall apply
to an amount of each partners share
of such partnership net income Dieter
mined under the law applicable to such
calendar Year, equal to the proportion
which the part Of such fiscal year fall
ing within such calendar year bears to
the full fiscal year
After sections dealing with CAPT
oal gain and loss and war risk paw.
ments,' the bill continues:
Sec. n. Paragraphs %, (2) and CD
OF subdivision (a) of section PA of the
Revenue act of 1918 are amended to
read as follows:
"Q) All the ordinary and necessary
expenses paid or incurred during the
taxable year in CARRYING on anv trade
or business, including reasonable al
iowance for salaries or other compen
satlon for personal services actually
rendered; travelling expenses (includ
ing the entire amount expended for
meals and lodging) while away from
nome In the pursuit of trade or busi-
ness; and rentals or other PAYMENTS
required to be made as a condition tn
the continued use or possession for
purposes of the trade or business. of
property to which the taxpayer has not
taken or is not taking title or in which
ne has no equity;
~ All interest paid or accrued
within the taxable year on Indebtedness
except on indebtedness incurred or con-
eihuea 10 purchase or carry obligations
or securities, the interest upon which
is wholly exempt from taxation under
this title as income to the taxpayer:
=, "(3) Taxes paid or accrued within
the taxable year except Cal income
war profits and excess profits tavas ' ;,,'
posed by the authority of the United
States or any of its possessions or of
any foreign country, and (b) taxes as
sessec against local benefits of a kind
1enolng to increase the value of the
property assessed"
To Deduct Losses
Section 214, Paragraphs S. 6. and 3
OF subdivision (a) of Section 214 of the
Revenue Act of 1918 are amended to
read as follows:
(5l Losses sustained during the
taxable year and not compensated for
ny insurance or otherwise, if incurred
~ any transaction entered into for
profit, though not connected with the
trade or business; but in the case of
nonresident alien individual or foreign
trader only if and to the extent that
the proht, If such transaction had re-
suited IN profit, would be taxable un-
der this title. No deduction shall he
allowed under paragraphs 4 and 5 for
any loss claimed to have been sustained
IN any sale or other disposition of
shares of stock or securities made
after the passage of the Revenue act CT
l9zl where 1t appears that at or about
the date of such sale or other DISPOSE
tlon the taxpayer has acquired ident-
cal property IN the same or substan-
TALLY the same amount as the prom
erty sold or disposed Of If such new
acquisition is to the extent of part
only OF Identical property, then the
amount of loss deductible shall be in
proportion as the total amount of the
property sold or disposed of bears to
the property acquired.
co. Losses sustained during the
taxable year Of property not con-
nected with the trade or business (but
in the case of nonresident alien
Individual or foreign trader only prop
erty. within the United States) l.
arising from fires, storms, shipwreck,
or other casualty, or from theft, and
II not compensated for by insurance or
T otherwlse. Losses allowed under par
agraphs ca, CD and CO. of this sub
olvlslon shall be deducted as of the
taxable year in which sustained un-
less, IN order to clearly reflect the
income, the loss should, in the opin
ION OF the commissioner, be accounted
Tor as OF a different period.
t1) Debts ascertained to be worth
less and charged off within the taxable
year or, in the discretion of the com
missioner, a reasonable addition to :,
reserve for bad debts); and when Sat-
ished that debt is recoverable only
IN part; the commissioner may allow
such debt to be charged off in part:
"(8) reasonable allowance for tha
exhaustion wear and tear of PROPERTY
used IN the trade or business includ-
ing reasonable allowance for obso-
iescence), based upon cost of such
property whether acquired before or
after March l, 1913"
Gifts and Requests